A person who is thinking of suing a company must first choose the civil court in which they want to file their lawsuit. There are two options in California: small claims court or a superior court. Which court a person chooses depends on the amount of money in damages they seek from the company they plan to sue, as well as a few other factors.
If a person seeks damages of $12,500 or less, the person, the “plaintiff” in legal terminology, may file in small claims court. A business entity, e.g., a partnership or corporation, may sue for only as much as $6,250 or less in small claims court. The person or entity who is sued by the plaintiff is the “defendant” in legal terminology.
If a person wants to sue for more than $12,500 but less than $35,000, they would file their lawsuit in a superior court. As with small claims courts, every California county has a superior court in which a person files their lawsuit if they seek more than $12,500 but less than $35,000. A lawsuit that seeks more than $12,500 but less than $35,000 is a limited civil suit.
A person should also file a civil lawsuit seeking more than $35,000 in a superior court, the same court in which a person files a limited civil suit. A suit that seeks over $35,000 in damages is an unlimited civil lawsuit.
When a person first files their complaint and begins a civil lawsuit in a superior court in California, they must include a form, the CM-010, with their initial filing. This form is the civil cover sheet for all California civil cases. On the form, there is a section in which a person may indicate whether their suit is a limited or unlimited one.
- Small Claims Court Cases: These cases are typically faster, less complicated, and less expensive than a limited civil case.
- A natural person cannot have a lawyer represent them. So, a person would only file in small claims court if they are confident that they can represent themselves. They could ask a local attorney in California for advice and help before going to court, of course. But a lawyer cannot appear in court on the plaintiff’s behalf;
- The plaintiff has to collect the money they are awarded if they win themselves. The court does not help them do this;
- There are no appeals in small claims court. The judgment of a small claims court is final. The only situation in which a person can appeal is if they are sued or counter-sued by another person and they lose;
- Limited and Unlimited Civil Cases: If a person plans to file a limited or unlimited civil case, they would probably want to be represented by a lawyer. However, a person is not legally required to have one. If a person represents a corporation in a limited civil case, whether as a plaintiff or defendant, they are then required to have a lawyer.
It is important to keep in mind that even if a person chooses to represent themselves, the court expects them to know and follow all of the California Code of Civil Procedure and the California Rules of Court. The court would not give any special favors to a person because they are not a lawyer and not the master of the rules and the law.
In fact, if a person were to fail to follow court rules and law, the court might fine them. In extreme cases, the person could lose certain rights or even their entire case. That said, a person does not have a right to an attorney in civil cases as they do in criminal cases.
If a person wants a lawyer to sue a company on their behalf, they would have to pay for one themselves or find a lawyer who would represent them on a pro bono basis. Or a person may have a lawyer who is hired to handle only certain parts of a person’s case that are too complicated for the person to do themselves. This is referred to as “limited-scope representation,” and it is an option in California.
In the case of both small claims and limited/unlimited claims, a person’s lawsuit must be filed in a California county that has a connection to the events that have given rise to the lawsuit. That county might be any of the following:
- Where most of the witnesses are located;
- Where the events, e.g., a car accident, took place;
- Where the defendant lives;
- Where the defendant company has its principal place of business;
- Where the plaintiff lives;
- Where the plaintiff has their principal place of business.
More than one county might meet one or more of these requirements. In that case, a person would want to think strategically about which one would be the best choice.
Yet another issue is that in some cases, a person may be able to, or have to, file their civil lawsuit in a federal civil court. It gets complicated, but if a person believes that federal court might be an option for their lawsuit against a company, they would probably be well-advised to consult a local California attorney for guidance.
What Are the Reasons for Which Can I Sue a Company?
There are two main types of civil lawsuits. Most claims that a person may have against a company would fall into one of three categories. They are as follows:
There are several other kinds of cases that are filed in California superior courts or special divisions of these courts, e.g., family law cases such as petitions for dissolution of marriage; landlord-tenant cases, e.g., evictions, probate cases related to wills, juvenile cases, e.g., cases involving juvenile delinquency and juvenile dependency. In addition, cases may involve issues such as name changes, civil harassment, and others that are too numerous to mention.
However, most of the cases in which a person would sue a business involve either breach of construct, personal injury, or employment discrimination, although a landlord-tenant case might involve a commercial lease and a tenant who sues a corporate landlord.
What Types of Lawsuits Can Be Initiated Against a Company?
Any type of civil lawsuit may be initiated against a company. As noted above, the vast majority of cases would fall into one of three categories: breach of contract, personal injury, or employment discrimination.
A breach of contract case generally arises from a business relationship. The parties to a contract, which can be written, oral, or implied from circumstances, may get into a dispute about the terms of their agreement or whether one party or the other has failed to perform their side of the bargain. For example, the party that was obligated by a contract to pay for the other party’s performance fails to pay.
Many types of cases come within the category of personal injury. A personal injury claim in California may involve a wide variety of civil wrongs. It may involve a car accident with a motor vehicle that a company owns. It may involve a claim of medical malpractice against a hospital that a company owns.
A personal injury claim might involve a slip and fall incident on the premises of a company, e.g., a grocery store. Defamation is a kind of civil wrong for which a person may file a lawsuit. Wrongful termination from a job is grounds for a personal injury lawsuit.
What Types of Companies Can Be Liable?
Any type of company may be potentially liable in civil law for breach of contract, personal injury, or employment discrimination unless the business is not a sole proprietorship with no employees.
How Do I Sue a Company for Damages?
As noted above, the first step is to think about the court in which a person may file their case. Before completing the necessary documents and presenting them to the clerk of the court for filing, a person would want to prepare for the following stages of a lawsuit:
- Before filing: The pre-filing period starts when events give rise to the grounds for a lawsuit, e.g., when a car accident happens or the owner of a building fails to pay a contractor for work done on their building. There are a lot of things a person must do to get ready before filing a lawsuit. They need to start collecting evidence to prove their case from the beginning;
- Filing: A person must prepare a complaint, which is a legal document that clearly states the factual basis for the lawsuit and the relief that the plaintiff seeks, e.g., money damages. The plaintiff must then present the original and at least 2 copies of their complaint and any forms required by the court to the clerk of the court. The clerk accepts the original, stamps the copies “Filed,” and returns them to the plaintiff.
- The clerk assigns a number to the case, and the plaintiff wants to make a special note of the case number and use it on all future filings.
- A person may use forms published by the California Judicial Council, but if they do not, they must follow the requirements in the California Rules of Court, starting with rule 2.100.
- In addition, some superior courts have local rules requiring special cover sheets or local forms. A person can find this out by asking the court clerk in their local court about any local rules that may apply;
- Service on the Defendant: The plaintiff must serve a copy of the complaint and any other required forms on the defendant to notify them of the fact that they have been sued;
- Response or Default: Once the defendant has been served, they have 30 days to respond by filing their answer with the court. If the defendant fails to respond, they are in default. If the defendant was served by substitute service, i.e., serving the papers to another person in the household and mailing a second copy, the defendant has 40 days from the date of the mailing to file their answer. Again, if they miss the deadline, they are in default;
- Discovery: After 10 days have passed since service of the summons, 20 days for depositions, or as soon as the defendant answers the lawsuit, the parties may begin the discovery process. The discovery process allows both sides to exchange information and learn about the evidence they may use in their trial, e.g., witness testimony, documents, and the like;
- Arbitration: If a case involves $50,000 or less, a California court may direct the plaintiff and defendant to participate in judicial arbitration. The decision of the arbitrator is not binding unless the parties agree that it is. If the parties do not agree on a binding arbitration, either party can file a request for trial within 30 days of the arbitrator’s decision. The court then schedules the case for trial.
- However, if the party that requests a trial does not win a judgment in court that is better than what they won in arbitration, they may lose the right to recover certain costs and may be ordered to pay certain costs to the other side. So, a person wants to think carefully about whether they want to take the risk of ending up with less after a trial than they might have had at the end of an arbitration;
- Before trial: If the parties are not able to settle a case, the pre-trial period begins about 90 days before the date set for trial. The parties must prepare by lining up their witnesses and other evidence they plan to use, e.g., documents. There may also be settlement conferences with the judge assigned to the case;
- Mandatory settlement conference: Before the trial, the court may require that the parties participate in a mandatory settlement conference in which they try to settle the case. This may take place in the judge’s chambers or in a courtroom;
- Trial: The length of trial, of course, depends on the unique circumstances of the case. Some may last weeks or more. Others may take a few hours. There may be a jury, or the judge may decide the case; the choice is the plaintiff’s;
- Post-trial: This means after the trial. This is when either side can appeal. It is important to keep in mind that very few cases are reversed on appeal. Or, if a party has won an award of damages, they may collect the damages from the defendant.
Serving a summons, complaint, and other documents for a company might be challenging in some circumstances. In California, the law requires corporations, limited liability companies, limited partnerships, and limited liability partnerships to designate an agent for service of process. This is a person who is supposed to be available to receive service at a designated place.
A person may be able to identify the agent for service of a company through the Secretary of State’s office website. A person can learn more about a company, its location, and possibly its agent for service of process through the Business Search feature on the Secretary of State’s website.
Again, if a person wants to handle their lawsuit themselves and finds they have a problem affecting service of process on the company they want to sue, they may want to consult a local California attorney regarding this issue at least.
How Long Do I Have to File a Lawsuit Against a Company?
A “statute of limitations” is a law that sets a time limit on a person’s right to file a lawsuit. The length of time that person has to start a civil lawsuit against a company depends on the nature of the lawsuit and California law. For example, the statute of limitations for an action based on the breach of an oral contract is 2 years.
A personal injury lawsuit may involve medical malpractice. In this case, the statute of limitations is expressed as “within one year after the plaintiff discovers, or through the use of reasonable diligence should have discovered, the injury” or within 3 years of the date of the injury, whichever comes first.
The issue of the statute of limitations in any given case is a technical one. If a person plans to sue for a relatively small sum of money in small claims court, they may wish to consult a lawyer about the issue of the statute of limitations.
In any event, if a person believes that they have reason to file a civil lawsuit against a company, they need to be aware of statutes of limitations, and they may want to consult a local California attorney about the statute that would apply in their case and how much time it gives them to file their lawsuit. Even if a person intends to represent themselves in small claims court, they may want to consult an attorney about this issue.
What Kind of Lawyer Do I Need to Sue a Company?
If you believe that you have reason to sue a company in civil court, you want to consult a California business lawyer. Your business lawyer can tell you what kind of case you should file and how much time you have to file it. LegalMatch.com can connect you to a lawyer who can guide you to the right court and help guide you through the process of suing a company.
