Small Claims court case?

[stoooo]

My small corporation of 15 employees in los angeles,CA is in dispute with our workers comp insurance over added charges. They decided to allocate all our employess to a higher rate class for the whole year after an inspection was done three months till the end of the policy. We feel we should only pay the changed rate from the inspection on. The added charges they seek total $7000. We are willing to pay them $2200, the charge from the inspection on, leaving $4800 in dispute. The california insurance commition reviewed the case and said there is No law saying what the insurance company did in asking for the whole year is wrong, but they also say there is No law saying that they legaly can ask for the whole year paymet. In a sense they were not sure and could not help us. My question is, is this a case for small claims. Can a corporation go to small claims court? Would the insurance company first have to accept the $2200 to go below the $5000 limit. The main reason for these questions is because we would rather settle this in small claims, rather than a regualr trial in which lawyers would be needed and a much highr cost would be incured. The insurance company has already threated to take us to court, because they feel strongly they are right in this matter, but i want to see if i can tell them to settle this in small claims court.

 

[JenniferH]

You need to see an attorney in your area. This is too complicated for a thorough answer on this board.

Thank you.

 

[stoooo]

No lawyers

My buisness is to small to afford lawyers, that is why I want to go to small claims. What part of my case is too complex?

 

[JenniferH]

Check with your small claims court as to the limit you can sue for.

Also, usually can't sue to get a bill lowered only if someone has a debt that they owe you. It sounds like you want them to lower the bill in which small claims court will not be your answer.

This actually sounds like a litigation matter which would be outside of the small claims court jurisdiction.

Best to get a consult with a lawyer in your area. Most have an hour free deal. Go armed with questions so you get the most out of your consult.

This board will most likely not be the answer you want to get. We give general advice, legal and non legal.

Good Luck,

 

[JETX]

My $0.02 worth...

JenniferH is absolutely correct. This case cannot be pursued in Small Claims Court for the following reasons:

1) A corporation cannot use the Small Claims court venue in most states.
2) At this point you have not been 'damaged'. This is purely a 'dispute between two parties'. Once you pay the disputed amount, you can take action to recover your 'damages'.
3) Most Small Claims courts are limited to money recovery only. They cannot order someone to perform or comply with an agreement, only award you for your 'damages'.

You need to talk this issue over with an attorney. I am sure that your Board has provided a legal reserve fund for just these situations... haven't they?? If not, they need to allocate a little of the corporations 'profits' to this cause. The corporation will be extremely lucky if they NEVER find a need for competent counsel.