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NORTH CAROLINA SMALL CLAIMS
INCREASED TO FOUR THOUSAND DOLLARS
($4,000.00)
AMOUNT IN CONTROVERSY INCREASED

Effective, October 1, 1999, the dollar limit in North Carolina Small Claims Court was increased to four thousand dollars ($4,000.00). The new law became effective October 1, 1999 and applies to claims filed for causes of action arising on or after that date.

Previously, the dollar limit in Small Claims Court was three thousand dollars ($3,000.00). However, manybusinesses and the business lobby consistently requested the dollar limit be increased to a higher amount. The increase to four thousand dollars ($4,000.00) was approved in the North Carolina General Assembly on August 5, 1999 and became effective October 1, 1999.

REQUESTED RELIEF IN SMALL CLAIMS

A Plaintiff may file an action in Small Claims Court for the following relief:

1. When the amount in controversy does not exceed $4,000.00;

2. The only principal relief requested is monetary, or the recovery of specific personal property, or summary ejectment, or any combination of the foregoing in properlyjoined claims; and

3. The Plaintiff requests that the Small Claims Court hear the dispute.

PROCEDURE FOR COMMENCEMENT OF THE ACTION

The Plaintiff must file the complaint in the office of the Clerk of Superior Court of the county wherein the debtor or one of the debtors resides. The summons and complaint must then be served on the debtor/defendant to provide notice to the debtor/defendant. The court will establish a scheduled hearing datewherein the parties must appear to present their case to the Magistrate. The parties may present their case and evidence to the Magistrate. After hearing all the evidence, the Magistrate will issue an Order or Judgment. If the Judgment is in favor of the Plaintiff, the Judgment should then be docketed in the Office of the Clerk of Superior Court whereupon it becomes a lien against real property owned by the debtor.

We hope this information on Small Claims will help you to recover past due accounts. If you have anyquestions, please feel free to call or contact us.

Contributed by
James R. Vann, Attorney
VANN & SHERIDAN
ATTORNEYS AT LAW
1720 Hillsborough Street, Suite 200 (27605)
Post Office Box 2445
Raleigh, North Carolina 27602-2445
Telephone (919) 510-8585
Facsimile (919) 510-8570
www.vannattorneys.com