Corporations-Representation in Small Claims Court

As a general rule, a corporation must appear by counsel. Small Claims Rule 8 provides a limited exception for certain claims. A corporation, whether as a Plaintiff or a Defendant, may be represented by an employee who is not an attorney if the following conditions exist:

1)
The Claim (for or against the corporation) is not more than the prescribed limit set by Small Claims Rule 8(c) ($6,000.00); and
2)
The claim is not an assignment (such as a claim that has been assigned to a collection agency);
and
3)
There is a corporate resolution and employee affidavit on file with the clerk authorizing a full-time employee to represent the corporation. (Most small claims courts provide forms for this purpose.)

Sole Proprietors and Partnerships (Unincorporated Businesses)

As a general rule, an unincorporated business must be represented by the owner of the business or an attorney. Small Claims Rule 8 provides a limited exception for certain claims. A business, operated as a sole proprietorship or partnership, may (whether as a Plaintiff or Defendant) be represented by an employee who is not an attorney if the following conditions exist:

1)
The claim (for or against the business) is not more than the prescribed limit set by Small Claims Rule 8 (c) ($6,000.00); and
2)
The claim is not an assignment (such as a claim that has been assigned to a collection agency);
and
3)
The business has on file with the clerk an employee affidavit and certificate of compliance designating a full-time employee to represent the business. (The Small Claims Court may have forms available for this purpose.)

The following situations are NOT permissible:

1)
If the claim involves a corporation and it is less than the prescribed limit, an employee NOT authorized by resolution attempts to represent the corporation.
2)
If the claim involves a business operated as a sole proprietorship or partnership and it is less than the prescribed limit, an employee NOT authorized by the certificate of compliance attempts to represent the business entity.
3)
If the claim involves a corporation and it is greater than the prescribed limit, a non-attorney attempts to represent the corporation.
4)
If the claim involves a business operated as sole proprietorship or partnership and it is greater than the prescribed limit, an employee who is NOT an owner attempts to represent the business. (In such cases, the owner or an attorney must represent the business.)
5)
A person with only a power of attorney to act on behalf of any individual, business, or corporation, attempts to represent the individual, business, or corporation in court.