was in Small Claims, defendant countersued high amount to get it out of Small Claims

[fiorgodx]

What is the name of your state (only U.S. law)? NJ

My parents have a business and are trying to get back a $1,800 security deposit. The landlords never gave it back so my parents sued them in Small Claims.

The landlords originally countersued for $800, stating that the cost of their repairs were $800 more than the $1,800 deposit. However, only 2 of the 4 landlords in the partnership were available on the court date so they asked the judge if they could postpone the date to which my parents and the judge agreed.

The landlords then in a letter changed their counter suit from $800 to $7,000. $2,400 of that amount are made up and the rest of it is mostly the cost of their lawyer (there is a clause in the lease that my parents have to pay their lawyer fees if they're forced to sue). So now the amount is higher than small claims.

My question is, can they just do that? Trump up charges so that it's more than the small claims limit, so now my parents have to hire a lawyer and will end up losing money no matter what? It seems to me a tactic to get my parents to drop the case. Is there any way my parents can try to keep their suit in small claims, and have the the landlords sue separately? Does the countersuit have to mess up the money limit for my parents' suit?

If I'm missing anything or asking the wrong questions here please let me know, thanks!

 

[LdiJ]

What is the name of your state (only U.S. law)? NJ

My parents have a business and are trying to get back a $1,800 security deposit. The landlords never gave it back so my parents sued them in Small Claims.

The landlords originally countersued for $800, stating that the cost of their repairs were $800 more than the $1,800 deposit. However, only 2 of the 4 landlords in the partnership were available on the court date so they asked the judge if they could postpone the date to which my parents and the judge agreed.

The landlords then in a letter changed their counter suit from $800 to $7,000. $2,400 of that amount are made up and the rest of it is mostly the cost of their lawyer (there is a clause in the lease that my parents have to pay their lawyer fees if they're forced to sue). So now the amount is higher than small claims.

My question is, can they just do that? Trump up charges so that it's more than the small claims limit, so now my parents have to hire a lawyer and will end up losing money no matter what? It seems to me a tactic to get my parents to drop the case. Is there any way my parents can try to keep their suit in small claims, and have the the landlords sue separately? Does the countersuit have to mess up the money limit for my parents' suit?

If I'm missing anything or asking the wrong questions here please let me know, thanks!

Your parents do not have to hire an attorney. They can proceed in a regular court without one. Unfortunately they will not be able to dismiss the suit because of the counterclaim.

 

[fiorgodx]

When you say regular court, you mean they will not be able to remain in small claims court? Does "regular court" have different rules, different people ruling (jury vs. judge), will it cost more money, take more time, etc? These are my fears and why I was hoping there is a way to stay in small claims.

 

[latigo]

What is the name of your state (only U.S. law)? NJ

My parents have a business and are trying to get back a $1,800 security deposit. The landlords never gave it back so my parents sued them in Small Claims.

The landlords originally countersued for $800, stating that the cost of their repairs were $800 more than the $1,800 deposit. However, only 2 of the 4 landlords in the partnership were available on the court date so they asked the judge if they could postpone the date to which my parents and the judge agreed.

The landlords then in a letter changed their counter suit from $800 to $7,000. $2,400 of that amount are made up and the rest of it is mostly the cost of their lawyer (there is a clause in the lease that my parents have to pay their lawyer fees if they're forced to sue). So now the amount is higher than small claims.

My question is, can they just do that? Trump up charges so that it's more than the small claims limit, so now my parents have to hire a lawyer and will end up losing money no matter what? It seems to me a tactic to get my parents to drop the case. Is there any way my parents can try to keep their suit in small claims, and have the the landlords sue separately? Does the countersuit have to mess up the money limit for my parents' suit?

If I'm missing anything or asking the wrong questions here please let me know, thanks!

First of all it is not possible to do as you suggest. That is, force the landlords to file a separate lawsuit to recover judgment for the alleged damage.

Because their claim arises out of the same transaction (the lease agreement) they are compelled by court rules to have it heard in the same lawsuit by means of a counterclaim. Otherwise, they would be forever barred from asserting it.

Also there is some question here as to not only the total recognizable dollar amount of their counter claim, but the jurisdictional dollar limits in small claims court.

In new Jersey small claims case are heard in the Special Civil Part Section of Superior Court. When the issue involves landlord/tenants and the return of a security the dollar limit in the small claims section is $5000, not $3000.

You say that the landlords' have upped their counter claim from $800 to $7000 with some of it in the form of requested attorney fees. But whatever they are seeking by way of an award of attorney fees should not be included in calculating the maxim jurisdictional limit in small claims court.

So if the mentioned figure of $2400 is what the counterclaimants are asking as compensation for the alleged damages to the rental, the case should be below the $5000 threshold even if you add in you claim for the $1800.

And I don't believe that adding the two claims, even if it exceeded $5000, is the proper way to compute for purposes of coming within small claims' dollar jurisdiction.

The big problem here is how does a layperson effectively submit and argue the point to the court.
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Getting back to this business of attorney fees. You say that the lease agreement allows the landlords to an award of attorney fees if necessary to sue the tenant for breach of the lease agreement.

Well, it works both ways. That is, the tenant would be equally entitled to an award of attorney fees if they prevailed in a case against the landlord. Otherwise, that clause in the lease would be deemed unconscionable and unenforceable.