27-08.1 Small Claims Court
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<![CDATA[CHAPTER 27-08.1SMALL CLAIMS COURT27-08.1-01. Small claims court - Jurisdictional limits - Venue.1.All judges of the district courts may exercise the jurisdiction conferred by this<br>chapter, and while sitting in the exercise of that jurisdiction must be known and<br>referred to as the "small claims court". The jurisdiction of this court is confined to<br>cases for recovery of money, or the cancellation of any agreement involving material<br>fraud, deception, misrepresentation, or false promise, when the value of the<br>agreement or the amount claimed by the plaintiff or the defendant does not exceed<br>ten thousand dollars.2.The proceedings in this court must be commenced:a.If the defendant is a corporation, limited liability company, or a partnership, in<br>any county in which the defendant has a place of business or in any county in<br>which the subject matter of the claim occurred.b.If the claim is for collection of a check written without sufficient funds or without<br>an account, in the county where the check was passed, or in the county of the<br>defendant's residence or place of business.c.If the defendant is an individual and the claim is for collection of an open<br>account on which credit has been extended:(1)In the county of the defendant's residence or place of business; or(2)If the amount of the claim is less than one thousand dollars and is not<br>from a telephone or mail order transaction, in the county where the<br>transaction occurred or in the county of the defendant's residence or<br>place of business.d.If the defendant is an individual and the claim is not made under subdivision b<br>or c, in the county of the defendant's residence.e.If the defendant is an individual and the claim arose as the result of the<br>defendant's lease of real property, in the county where the defendant resides or<br>in the county where the real property is located.f.If the plaintiff is a political subdivision and the claim is for a public utility debt, in<br>the county in which the political subdivision is located.3.Except for an action under subdivision c, e, or f of subsection 2, the defendant may<br>elect to remove the action to a small claims court in the defendant's county of<br>residence. A claim may not be filed by an assignee of that claim. A garnishment or<br>attachment may not issue from this court until after judgment is entered.27-08.1-02. Commencement of action - Claim affidavit. Actions in the small claimscourt are commenced whenever any person executes and files with the court a claim affidavit,<br>and causes the affidavit to be served by a person of legal age, not a party to or interested in the<br>action, on the defendant or mails it to the defendant by certified mail along with a form upon<br>which the defendant must indicate whether a hearing is requested and whether the defendant<br>elects to remove the action to district court. If, within twenty days of service of the affidavit and<br>form, the court has not received a request for a hearing or an election to remove to district court,<br>or if the defendant indicates that a hearing is not requested, a hearing will not be scheduled and<br>judgment may be entered against the defendant by default. If the defendant requests a hearing<br>in small claims court, the hearing must be not less than ten days and not more than thirty daysPage No. 1after receipt of the request. Except for an action under subdivision e of subsection 2 of section<br>27-08.1-01, the mailing or personal service may be made anywhere within the state. Forms used<br>in small claims court actions must be approved by the state court administrator and obtained<br>from, or at the direction of, the clerk of district court or in electronic form from the supreme court.27-08.1-03. Informal hearing - Answer and counterclaim - Filing and service fees -Examination of debtor.No formal pleadings other than the claim affidavit and order forappearance may be required, and the hearing and disposition of actions must be informal. A<br>court reporter is not required to be present to take the testimony unless arranged for and paid for<br>by one of the parties to the action. The defendant may file an answer, and file a claim affidavit<br>setting forth any new matter constituting a counterclaim, not to exceed ten thousand dollars,<br>which must be served upon the plaintiff by a person of legal age, not a party to or interested in<br>the action, or mailed to the plaintiff by certified mail, not later than forty-eight hours before the<br>hearing set for the appearance of the defendant. The compulsory counterclaim rule does not<br>apply to counterclaims in excess of ten thousand dollars. At the hearing, the plaintiff and the<br>defendant may appear without counsel. The court will conduct the proceedings and may make<br>its own inquiry before, during, or after the hearing. After the court has found that money is owing<br>by any party to the proceeding, the court may, in the presence of the prevailing party, inquire of<br>the debtor as to plans for payment of the debt. The court may examine the debtor concerning<br>the property owned by the debtor, at the hearing, as would be made under chapter 28-25. The<br>examination may be made without first having issued an execution against the property of the<br>debtor and without further notice as otherwise provided in chapter 28-25. A trial by jury is not<br>allowed in small claims court. A fee as prescribed in subdivision c of subsection 1 of section<br>27-05.2-03 must be charged for filing the claim affidavit.27-08.1-04. Election to proceed in small claims court irrevocable. Election by theplaintiff to use the procedures provided for in this chapter is irrevocable. In the event the plaintiff<br>elects to discontinue the proceedings, the court shall enter its order accordingly, and unless<br>otherwise provided in the order the dismissal must be deemed to be with prejudice. By election<br>to proceed in small claims court, the plaintiff waives the right to appeal to any other court from<br>the decision of the small claims court.The defendant waives the right to appeal from thedecision of the small claims court upon receiving the order for appearance as required herein,<br>unless the defendant elects to remove the action from the small claims court to district court. If<br>the defendant elects to remove the action to district court, the defendant must serve upon the<br>plaintiff a notice of the removal and file with the clerk of the court to which the action is removed a<br>copy of the claim affidavit and the defendant's answer along with the filing fee, except for an<br>answer fee, required for civil actions. If the defendant elects to remove the action from small<br>claims court to district court, the district court shall award attorney's fees to a prevailing plaintiff.27-08.1-04.1. Dismissal without prejudice. If the judge determines at any stage of theproceedings that the case may not be fairly disposed of in small claims court, the judge may<br>dismiss the case without prejudice. A determination that a case may not be fairly disposed of in<br>small claims court must be based on complexity of factual or legal issues or a determination that<br>relief other than money damages or cancellation of an agreement is necessary to dispose of the<br>case. If a case is dismissed under this section, the filing fee must be refunded to the plaintiff.27-08.1-05. Judgment. The court shall enter a written judgment indicating its decisionon all cases filed with the court on the basis of the evidence presented. A judgment must be<br>entered even if either party fails to appear at the hearing. The court may award the costs of the<br>action to the prevailing party. For purposes of enforcement and execution, a judgment of the<br>small claims court has the same force, effects, and attributes of a judgment of the district court.27-08.1-06. Judgment unsatisfied - Docketing - Execution. Repealed by S.L. 1997,ch. 263, </p>
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