NO MORE LEGAL FEES! BUSINESS OWNERS CAN NOW REPRESENT THEIR BUSINESSES
IN OHIO SMALL CLAIMS COURTS

Every business owner faces the problem of non-paying customers. In most instances, these debts consist of small amounts. However, these debts can add up quickly. Small claims court provides businesses an efficient tool to collect debts equaling $3,000 or less. When a business files in small claims court, a trial will occur within 15-40 days from the initial filing, thus making it an excellent option to collect smaller debts.

Many owners have declined to use this mechanism since its legal fees may equal, if not exceed, the recovery. Generally, Ohio law prohibits a corporation from appearing in court without legal counsel. This recently changed when the Ohio Supreme Court held that in small claims court, a non-lawyer corporate officer may represent the corporation as long as the non-lawyer does not engage in cross-examination, legal arguments, or other acts of advocacy. In its recent decision, the Court overruled several lower court decisions prohibiting a non-lawyer corporate officer from representing the corporation in any court proceeding and allowed limited representation in small claims court since small claims cases require no special legal skill, and the proceedings are typically “non-adversarial.”

The Court’s decision makes small claims court an even more effective remedy for businesses. Owners no longer have to weigh the cost of recovery against legal costs. As long as the owner stays within the Court’s restrictions, he or she can represent their business in small claims court without incurring additional legal costs.

* Disclaimer: Licata & Toerek (‘Firm’) prepared this article to convey general information This article does not constitute legal advice.You should neither take nor refrain from taking any action based on the contents of this article without consulting legal counsel. Licata & Toerek is an Ohio legal professional association with lawyers licensed to practice in Ohio and various federal courts, including the United States Supreme Court. Although the firm represents clients in other states or clients with a national presence, the Firm does not provide advice in those situations without retaining local counsel for those services.

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These policies and procedures are provided without warranty, express or implied, as to their legal effect and completeness. We advise you to consult with an attorney to modify the policies and procedures on this website to address the particular needs of your business and to determine whether you may require additional documents, which are not contained on this website.