For small cases there are three levels of trial tribunals. First, is the Magisterial District Court. There is a district court near where you live which would have jurisdiction over a claim that you may have against another person, corporation or other form of business. A claim valued at $12,000 or less can be filed in your local district court[1] – and there is a district court (in Philadelphia, a municipal court) in every county in Pennsylvania. The great advantage of the district court for non-lawyers is that if you have a claim as an individual (you are the plaintiff) you can go to your local district court, take in the proper paperwork, (i.e. your contract, invoices, photographs, etc) fill out a form complaint that the court provides, pay a fee, and the court takes care of the service.

[1]  In November 2010, the Legislature adopted new jurisdictional limits for Pennsylvania’s magisterial district courts, effective January 22, 2011, increasing those limits from $8,000 to $12,000 in civil cases. Also effective January 22, 2011, Philadelphia’s Municipal Court jurisdictional limit was increased from $10,000 to $12,000. Interest and costs are not to be calculated when considering the jurisdictional limits.  This article is not intended to describe proceedings before the Magisterial District Court in traffic, criminal and landlord/tenant matters.

Once the defendant has been served, and answered, the court schedules a hearing and you go in and testify – you simply tell your story and provide the court with whatever documents help support your claim.  The court hears evidence from both sides and makes a ruling.  All this can be done without a lawyer if you do it as an individual.  In Pennsylvania, however, every corporation must hire a lawyer to defend itself unless the corporation files a written authorization allowing a representative of the corporation with personal knowledge to handle the matter.  In some instances if you make a meritorious claim against a corporation, this can give you, as an individual, an advantage, because it will be less expensive for the corporation to pay a claim with merit than hire a lawyer to defend it. (Conversely, while the corporation has to hire a lawyer, where the claim lacks merit, the corporation is likely to have an advantage with a professional advocate).

The Magisterial District Court decision is entered as a judgment and if not appealed the judgment becomes final and can be enforced.  If either party is dissatisfied with the District Court decision, he or she can appeal that decision within 30 days to the Court of Common Pleas. Here there will be a whole new hearing before three arbitrators in a compulsory arbitration (see below) – which is the next step for a claim below $25,000 to $50,000 (depending on the county).

Second, is Compulsory Arbitration.  Compulsory arbitration occurs in the Courts of Common Pleas, and may be more formal than the District Court – it requires you to prepare a more detailed written complaint and if you want a jury you must write “Jury Trial Demanded” on the first page of the complaint – but you can still represent yourself (you are called “pro se.”). Where the amount of a claim, exclusive of interest and costs, is less than $50,000 in larger judicial districts (embracing first, second or third class counties, or home rule counties) or $35,000 (in most other judicial districts, a case brought by a complaint in the Court of Common Pleas or appealed from a District (Municipal) Court, must go to compulsory arbitration before 3 arbitrator-lawyers appointed by the Court.[1]

Before the arbitration you can take discovery for the first time – ask formal questions of the defendant in writing (known as “Interrogatories” and “Requests for Production of Documents”), but this requires that you study the rules of discovery (which are available on line). The arbitration hearing generally occurs in a hearing room, not a court room, usually lasts a couple of hours at most, and typically does not require a lawyer if you are organized, have all the documents that show your position, and you are good at telling a story that is clear and to the point. Once again, if either party is dissatisfied with the decision of the arbitrators, that party can appeal to the Court of Common Pleas for a whole new trial.

Third, is the Court of Common Pleas. No new Complaint is necessary to appeal to the Court from an arbitration decision (but you will need a Complaint if your claim is “big,” i.e., over the jurisdictional amount). You must, however, file the necessary notice of appeal within 30 days after the decision of the arbitrators.  Proceedings before a trial judge and jury are more formal.  At the trial the judge will apply the rules of evidence strictly.  If you are getting the hang of it you can still represent your claim yourself, but it is difficult to act as both the advocate and to testify.  You may require a lawyer to assist you with the formalities at this level.

For more information contact attorney James Sargent at 610-430-8000.

[1] The jurisdictional limits for compulsory arbitration vary considerably with cases involving up to $50,000 being referred to arbitration in Philadelphia, Montgomery, Lehigh, Bucks, and Lancaster Counties, whereas the limit is set at $35,000 in Chester and Dauphin Counties (among others), $30,000 in York and Lackawanna Counties and only $25,000 in Allegheny County despite the size of that judicial district based in Pittsburgh.