Jurisdictional Maximum for Small Claims Courts in Ohio Increased

On September 28, 2016, the maximum amount of damages that parties can seek in Ohio’s small claims courts increased significantly – from $3,000 to $6,000, exclusive of court costs and interest. This is the first increase in the small claims court jurisdictional limit since 1997.

Ohio Revised Code § 1925.02, which governs Ohio’s small claims courts, has been amended through the passage of House Bill 387 to now provide that a small claims division has jurisdiction in civil actions for the recovery of taxes and money only where the amount in controversy does not exceed six thousand dollars. Of course, any claim by a plaintiff in excess of that figure must still be filed in the regular division of a municipal court, subject to a maximum damages amount of $15,000. Similarly, an action brought in small claims court will be transferred to the regular docket if there is a counterclaim or cross-claim that exceeds $6,000. Any claim in excess of $15,000 may only proceed in an Ohio court of common pleas or, if applicable, federal district court. 

This increase in the small claims division jurisdictional limit may affect how commercial entities proceed with certain disputes. Under Ohio Revised Code § 1925.17, a corporation may bring an action in a small claims court through an officer or salaried employee, provided that the corporation does not conduct cross-examination, argument, or other acts of advocacy without an attorney. In light of the amended jurisdictional limit, more corporate entities may choose to proceed in a small claims court rather than a municipal court or court of common pleas, but must keep in mind the limitations on proceeding without legal representation.