Small Claims Court: A Comprehensive Guide

Small Claims Court: Your Guide to Justice

Did you suffer small damages? Are you determined not to give up? Excellent decision! Now, where to begin? What exactly are small claims?

Overcoming Hesitation: Why File Small Claims?

Many avoid filing. Annual small claims numbers prove this. Most know the concept. But when it’s their turn, information is lacking. Energy to gather it is low.

Fighting Injustice: The Power of Small Claims

This reality must change. Injustice costs us money. It also hinders public change. Businesses learn via their wallets. If we don’t fight, we all lose.

Small Claims Process: Your Questions Answered

We simplified the process. Find answers to common questions. What is a small claim? How to file one? Where? When is judgment given? What are the costs?

Be Informed: Prepare for the Unexpected

Even without a current claim, be informed. It’s crucial should the need arise.

Small Claims Court: Quick and Accessible Justice

What is Small Claims Court? It’s the Magistrate’s Court. As of 2023, 29 operate in Israel.

Purpose of Small Claims

It offers “small and swift” justice. It handles small sum cases efficiently. Disputes are primarily straightforward.

Accessible Justice: Informal Proceedings

It simplifies the judicial system. It’s accessible and low-cost. The court operates informally. Strict rules of evidence don’t apply. It favors “smaller” plaintiffs. They often lack legal expertise. They wouldn’t sue without just cause.

What are Small Claims?

Small Claims Court: Monetary Limit

A claim cannot exceed 38,900 NIS (Jan 2024). It can be for money. Or for product return, replacement, or repair. Value must not exceed the limit.

Jurisdiction: What Small Claims Handles

Claims can be for any judiciable matter. Not within another court’s exclusive jurisdiction. “Exclusive jurisdiction” means specific courts. They handle certain case types.

Examples of Exclusive Jurisdiction

Suing a spouse for 10,000 NIS? Not in Small Claims Court. Go to Rabbinical or Family Court. Employees sue employers only in labor courts. There, a fast-track procedure exists.

What needs to be submitted to initiate a small claim?

The document initiating the proceedings is a Statement of Claim. It must include all relevant and essential facts to prove the claim’s allegations. There is no point in including irrelevant details that do not strengthen or weaken the claim itself.

Can one file as many small claims as desired?

No. An individual may file up to 5 small claims in the same court and calendar year.

For example: Between January 1, 2021, and December 31, 2021, an individual may file only up to 5 claims in the Kfar Saba Small Claims Court; this does not prevent them from filing 5 claims in the Netanya Small Claims Court, 5 in Haifa, and so on in the same year. This applies only to small claims courts; an individual can, in principle, file as many “regular” claims as desired in various courts (Magistrate’s, Family, Labor, etc.).

What documents must be attached to the Statement of Claim?

All documents supporting the claimant’s allegations and upon which they wish to rely must be attached. For example: In a claim for breach of a rental agreement, it is logical to attach a copy of the signed agreement and any document substantiating the alleged breach (such as text messages, a bounced check, a recorded conversation, etc.). For supplier-customer claims, attach the contract documents and any document/recording/video supporting the other party’s breach of contract.

Where can I obtain a small claims form?

The judiciary has published a handwritten Statement of Claim form. However, in today’s technological age, filling out a form manually feels archaic. Downloading, printing, planning the presentation of arguments, handwriting, printing numerous documents, and attaching them is not a particularly appealing process. Experience shows that most people prefer assistance in preparing and submitting the Statement of Claim, resulting in a neatly organized and printed form with a clear index of annexes.

How to file a small claim?

Several options:

1. Online through the Net Mishpat website after connecting to the government identification system.
2. By submitting a physical copy of the Statement of Claim and annexes (if any) to the Small Claims Court registry where you wish to file (in person or via a legal messenger).

For an article reviewing everything you need to know after preparing the Statement of Claim.

Are there mandatory costs?

Yes. Upon filing, a court fee of 1% of the claim amount, but no less than 50 NIS, must be paid. Thus, for claims up to 5,000 NIS, the claimant pays 50 NIS; above 5,000 NIS, 1% of the claim amount.

Claim filing cost calculator, Small Claims Amount.

Small Claims Amount

The maximum amount claimable in small claims is 38,900 NIS (as of January 2024). Claim filing cost calculator.

How to pay the court fee?

1. If filing through Net Mishpat, payment can be made via credit card (a rechargeable credit card from the Post Office is considered a credit card).
2. In cash, using a slip issued for payment through: 1. Post Office; 2. Menta branches (convenience stores of the Dolek company); 3. Ben Gurion Airport. According to Courts Administration Procedure No. 02-5-11, for payment via slip, a valid ID (ID card/driver’s license/passport) is required. If a third party pays (e.g., a friend for their friend), the third party must present their ID and the claimant’s ID at the Post Office.
3. Payment by bank check: According to the Courts Administration, the court registry only accepts checks from lawyers, banks, and insurance companies. However, the registry accepts bank drafts from private individuals.

For further information, visit the Courts Administration information page regarding fees and payments

Are there cases where I am entitled to exemption from paying the filing fee?

Yes. The Court Fees Regulations, 5767-2007, specify litigants entitled to fee exemption (e.g., those facing financial hardship who meet certain conditions).

To obtain an exemption, attach a request for fee exemption with supporting documents as specified in the regulations, depending on the type of exemption sought. For instance, a litigant claiming inability to pay must attach a declaration detailing their assets, those of their spouse and parents (if dependent on them), and income sources for the six months preceding the request. For this purpose, you can use the sample form published by the Courts Administration.

Can I file the claim in any court I wish?

No. While most claimants prefer to file in a court near their residence, this is not always possible. Filing is permitted in one or more of the following locations (see notes regarding claims for online trade/advertising and counterclaims):

1. The defendant’s place of residence;
2. The defendant’s place of business;
3. The place where the act or omission occurred giving rise to the claim.

Two notes:

1. In claims related to online trade or advertising (e.g., online product purchase or defamation on Facebook), claims can also be filed at the claimant’s place of residence or business.
2. Counterclaims can only be filed in the court where the original claim was filed.

If I sue multiple defendants, where can I file?

The court with jurisdiction over one defendant, according to the local jurisdiction rules outlined above, will have jurisdiction over all defendants.

Example: Dino sued two individuals; one residing in Afula, the other in Tel Aviv. Dino can file against both defendants in the Small Claims Court in either Afula or Tel Aviv. Again, claims for online trade/advertising can be filed at the claimant’s or one of the claimants’ place of residence/business; counterclaims only in the court where the original claim was filed.

Can a lawyer represent me?

Generally, no. However, with sufficient justification, a request for permission to be represented can be submitted, and the court may grant it.

I filed a small claim – what next?

After filing a small claim, the court registry issues a receipt (recording the date and time of filing) and opens a file. To avoid delays and requests for supplemental information/documents, ensure accuracy and completeness of information provided.

Upon file opening, the claimant receives a file number with a three-part format: 12345-12-21. The Statement of Claim is served on the defendant, who can then file a Statement of Defense, along with a summons for a hearing. Before the hearing, various possibilities exist: The court may offer mediation; written requests and responses may be filed; the defendant may not file a defense; or the defendant may contact the claimant to settle out of court.

Must I serve the Statement of Claim on the defendant?

Serving a pleading in legal proceedings is called “service.” Do I need to serve the Statement of Claim on the defendant(s)? Generally, no.

The court clerk is responsible for serving the Statement of Claim and summons on the defendant (and claimant). However, the claimant should not remain passive: If the court clerk has not served the Statement of Claim on the defendant 60 days before the scheduled hearing, the claimant must serve it at least 40 days prior.

How do I know if the court clerk served the defendant?

Several options:

1. Track your case on the “Net Mishpat” website.
2. Contact the registry of the court where you filed your claim by phone.
3. Contact the Courts Information Center by phone.

Can a filed small claim be withdrawn?

Yes. A written request outlining the reasons must be submitted. The more advanced the proceedings, the stronger the justification required to warrant withdrawal.

How long does it take to receive a judgment?

It varies. While the court aims to issue a summary judgment within 7 days of the last hearing, this isn’t always the case. Sometimes, judgment is delivered at the hearing’s conclusion (especially if settled), while other times there are delays.

According to the Courts Administration, the average duration for small claims is approximately six months (from filing to judgment).

Can I appeal the judgment?

There is no automatic right of appeal against a Small Claims Court judgment. However, within 15 days, a request for leave to appeal to the District Court of the relevant jurisdiction can be submitted.