27-08.1 Small Claims Court

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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,</div></article><aside class="right-sidebar"><div class="related-sidebar"><h3><span class="emoji">⚖️</span> State Laws</h3><ul class="state-laws-list"><li><a href="https://state-laws.laws.com/state-of-alabama">The State Laws of Alabama</a></li><li><a href="https://state-laws.laws.com/state-of-alaska">The State Laws of Alaska</a></li><li><a href="https://state-laws.laws.com/state-of-arizona">The State Laws of Arizona</a></li><li><a href="https://state-laws.laws.com/state-of-arkansas">The State Laws of Arkansas</a></li><li><a href="https://state-laws.laws.com/state-of-california">The State Laws of California</a></li><li><a href="https://state-laws.laws.com/state-of-colorado">The State Laws of Colorado</a></li><li><a href="https://state-laws.laws.com/state-of-connecticut">The State Laws of Connecticut</a></li><li><a href="https://state-laws.laws.com/state-of-delaware">The State Laws of Delaware</a></li><li><a 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height:815px; text-align:center;\"\u003eLoading PDF...\u003c/div\u003e\u003cscript type=\"text/javascript\"\u003e var pdf_url = 'https://law.justia.com/codes/north-dakota/2009/t27/pdf/t27c081.pdf'; $(document).ready(function() { var embedwindow = $(\"#embed_document\"); if ($.browser.msie){ embedwindow.html('\u003cembed src=\"'+pdf_url+'\" width=\"100%\" height=\"100%\"\u003e\u003c/embed\u003e'); } else { embedwindow.html('\u003ciframe style=\"width:100%; height:100%;\" src=\"https://docs.google.com/gview?url='+window.escape(pdf_url)+'\u0026embedded=true\" frameborder=\"0\"\u003e\u003c/iframe\u003e'); } });\u003c/script\u003e\u003cbr\u003e\u003cbr\u003e\u003cnoframes\u003eCHAPTER 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\u003cbr\u003echapter, and while sitting in the exercise of that jurisdiction must be known and\u003cbr\u003ereferred to as the \u0026quot;small claims court\u0026quot;. The jurisdiction of this court is confined to\u003cbr\u003ecases for recovery of money, or the cancellation of any agreement involving material\u003cbr\u003efraud, deception, misrepresentation, or false promise, when the value of the\u003cbr\u003eagreement or the amount claimed by the plaintiff or the defendant does not exceed\u003cbr\u003eten 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\u003cbr\u003eany county in which the defendant has a place of business or in any county in\u003cbr\u003ewhich the subject matter of the claim occurred.b.If the claim is for collection of a check written without sufficient funds or without\u003cbr\u003ean account, in the county where the check was passed, or in the county of the\u003cbr\u003edefendant's residence or place of business.c.If the defendant is an individual and the claim is for collection of an open\u003cbr\u003eaccount 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\u003cbr\u003efrom a telephone or mail order transaction, in the county where the\u003cbr\u003etransaction occurred or in the county of the defendant's residence or\u003cbr\u003eplace of business.d.If the defendant is an individual and the claim is not made under subdivision b\u003cbr\u003eor 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\u003cbr\u003edefendant's lease of real property, in the county where the defendant resides or\u003cbr\u003ein 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\u003cbr\u003ethe 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\u003cbr\u003eelect to remove the action to a small claims court in the defendant's county of\u003cbr\u003eresidence. A claim may not be filed by an assignee of that claim. A garnishment or\u003cbr\u003eattachment 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,\u003cbr\u003eand causes the affidavit to be served by a person of legal age, not a party to or interested in the\u003cbr\u003eaction, on the defendant or mails it to the defendant by certified mail along with a form upon\u003cbr\u003ewhich the defendant must indicate whether a hearing is requested and whether the defendant\u003cbr\u003eelects to remove the action to district court. If, within twenty days of service of the affidavit and\u003cbr\u003eform, the court has not received a request for a hearing or an election to remove to district court,\u003cbr\u003eor if the defendant indicates that a hearing is not requested, a hearing will not be scheduled and\u003cbr\u003ejudgment may be entered against the defendant by default. If the defendant requests a hearing\u003cbr\u003ein 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\u003cbr\u003e27-08.1-01, the mailing or personal service may be made anywhere within the state. Forms used\u003cbr\u003ein small claims court actions must be approved by the state court administrator and obtained\u003cbr\u003efrom, 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\u003cbr\u003ecourt reporter is not required to be present to take the testimony unless arranged for and paid for\u003cbr\u003eby one of the parties to the action. The defendant may file an answer, and file a claim affidavit\u003cbr\u003esetting forth any new matter constituting a counterclaim, not to exceed ten thousand dollars,\u003cbr\u003ewhich must be served upon the plaintiff by a person of legal age, not a party to or interested in\u003cbr\u003ethe action, or mailed to the plaintiff by certified mail, not later than forty-eight hours before the\u003cbr\u003ehearing set for the appearance of the defendant. The compulsory counterclaim rule does not\u003cbr\u003eapply to counterclaims in excess of ten thousand dollars. At the hearing, the plaintiff and the\u003cbr\u003edefendant may appear without counsel. The court will conduct the proceedings and may make\u003cbr\u003eits own inquiry before, during, or after the hearing. After the court has found that money is owing\u003cbr\u003eby any party to the proceeding, the court may, in the presence of the prevailing party, inquire of\u003cbr\u003ethe debtor as to plans for payment of the debt. The court may examine the debtor concerning\u003cbr\u003ethe property owned by the debtor, at the hearing, as would be made under chapter 28-25. The\u003cbr\u003eexamination may be made without first having issued an execution against the property of the\u003cbr\u003edebtor and without further notice as otherwise provided in chapter 28-25. A trial by jury is not\u003cbr\u003eallowed in small claims court. A fee as prescribed in subdivision c of subsection 1 of section\u003cbr\u003e27-05.2-03 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\u003cbr\u003eelects to discontinue the proceedings, the court shall enter its order accordingly, and unless\u003cbr\u003eotherwise provided in the order the dismissal must be deemed to be with prejudice. By election\u003cbr\u003eto proceed in small claims court, the plaintiff waives the right to appeal to any other court from\u003cbr\u003ethe 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,\u003cbr\u003eunless the defendant elects to remove the action from the small claims court to district court. If\u003cbr\u003ethe defendant elects to remove the action to district court, the defendant must serve upon the\u003cbr\u003eplaintiff a notice of the removal and file with the clerk of the court to which the action is removed a\u003cbr\u003ecopy of the claim affidavit and the defendant's answer along with the filing fee, except for an\u003cbr\u003eanswer fee, required for civil actions. If the defendant elects to remove the action from small\u003cbr\u003eclaims 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\u003cbr\u003edismiss the case without prejudice. A determination that a case may not be fairly disposed of in\u003cbr\u003esmall claims court must be based on complexity of factual or legal issues or a determination that\u003cbr\u003erelief other than money damages or cancellation of an agreement is necessary to dispose of the\u003cbr\u003ecase. 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\u003cbr\u003eentered even if either party fails to appear at the hearing. The court may award the costs of the\u003cbr\u003eaction to the prevailing party. For purposes of enforcement and execution, a judgment of the\u003cbr\u003esmall claims court has the same force, effects, and attributes of a judgment of the district court.27-08.1-06. Judgment unsatisfied - Docketing - Execution. 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