Filing a lawsuit in small claims court can be a powerful tool for resolving disputes quickly and affordably. But what happens if you file a claim and lose?
Many litigants worry about what’s at stake beyond simply not recovering damages.
Here’s a breakdown of what you could be on the hook for, what rights you retain, and how to protect yourself from unexpected surprises in Los Angeles County small claims court.
If you file a small claims lawsuit in LA California, and lose, what are the potential liabilities?
In California’s small claims court, if you, as the plaintiff, lose your case, your primary liabilities are limited. You are responsible for your own court costs, such as filing fees, which range from $30 to $100 depending on the amount of your claim. If you cannot afford these fees, you can request a fee waiver from the court.
As the plaintiff, you do not have the right to appeal the court’s decision if you lose your claim; the judge’s decision is final. However, if the defendant filed a counterclaim against you and you lost on that claim, you have the right to appeal that specific decision.
In most small claims cases, each party is responsible for their own costs, and the court does not typically order the losing party to pay the prevailing party’s attorney fees or other expenses. However, if the defendant filed a counterclaim and won, the court may order you to pay the judgment amount awarded to the defendant.
It’s important to note that while the court’s judgment is final, if you believe there was a legal or clerical error, you can file a “Request to Correct or Vacate Judgment.” This is not an appeal but a request for the court to reconsider its decision based on specific errors.
Overall, your potential liabilities are primarily limited to your own court costs and any judgment awarded to the defendant if they filed a counterclaim and prevailed.
1. You Pay Your Own Filing Fees (Even If You Lose)
When you initiate a small claims case in California, you pay a filing fee based on the amount of your claim:
- Claims under $1,500: $30
- Claims between $1,500 and $5,000: $50
- Claims between $5,000 and $10,000: $75–$100 (varies slightly by court)
If you lose, this fee is non-refundable. However, if you cannot afford the filing fee, you can submit a Request to Waive Court Fees (Form FW-001). If approved, the court will waive filing fees, service costs, and other court-related expenses.
✅ Pro Tip: Always ask the court clerk for the correct fee amount and inquire about fee waivers if money is tight.
2. No Right to Appeal If You’re the Plaintiff
This is one of the biggest risks when you file a claim and lose in small claims court.
- In California, plaintiffs do not have a right to appeal the judge’s decision in small claims court.
- This means the judge’s ruling is final and binding—there are no second chances or higher courts to review your side of the story unless very specific legal errors were made.
Exception:
If the defendant files a counterclaim and you lose that portion of the case, you do have a right to appeal the counterclaim judgment.
3. If the Defendant Filed a Counterclaim, You Could Owe Them
While most small claims involve only the plaintiff seeking money, sometimes the defendant files a counterclaim. This means they’re suing you back during the same hearing.
- If the defendant wins their counterclaim, you will owe them the awarded judgment amount.
- That judgment becomes enforceable—meaning they can potentially collect it through wage garnishment, bank levies, or liens if you don’t pay voluntarily.
Example:
You sue a contractor for $2,500 for incomplete work. The contractor countersues for $3,000, claiming you breached the contract. If the court agrees with the contractor, not only do you lose your case, you may be ordered to pay the $3,000 judgment.
4. No Attorney Fees – But Court Costs May Apply
California small claims court is designed to be “lawyer-free.” Attorneys are generally not allowed to represent parties during the hearing. Because of this:
- Each party is usually responsible for their own court costs (filing fees, service of process fees, etc.).
- The court does not award attorney’s fees, since attorneys aren’t present.
In some cases, the judge may award allowable court costs to the prevailing party, but this is relatively rare and modest in amount.
5. Judgment Reporting and Credit Implications
If a judgment is entered against you, that becomes part of the public record. Some consequences include:
- Credit Impact: The judgment may appear on your credit report if the prevailing party takes steps to collect it or files an abstract of judgment.
- Collection Risks: The winning party can enforce the judgment by:
- Garnishing your wages
- Freezing your bank account
- Placing a lien on real estate
This is why it’s important to understand what happens if a counterclaim is filed and upheld.
6. What if the Judge Made a Mistake?
If you believe the court made an error in fact, law, or procedure, you may file one of the following motions:
- Request to Correct or Vacate Judgment (Form SC-108):
- Must be filed within 30 days of the judgment being mailed to you.
- Applies to mistakes like mathematical errors, clerical misstatements, or judgment issued against the wrong party.
⚠️ This is not the same as an appeal. It only allows the judge to correct specific, identifiable errors. The court does not re-hear your case or reconsider the entire matter.
7. Risk vs. Reward: Weighing the Consequences
Before filing a small claims case, ask yourself:
- Is the defendant likely to countersue?
- Am I confident in my documentation and witnesses?
- Is the evidence overwhelmingly in my favor?
- Am I willing to accept the risk of losing with no ability to appeal?
Summary: What You Risk if You Lose in LA Small Claims Court
| Risk | Details |
|---|---|
| Filing Fees | $30–$100 depending on claim size – non-refundable unless waived |
| No Appeal (if you’re the plaintiff) | Judge’s decision is final |
| Counterclaim Liability | You may owe money if defendant countersues and wins |
| Credit & Collections Risk | Public judgment could lead to wage garnishment or liens |
| No Attorney Costs Awarded | Each side covers their own costs – no reimbursement for legal help |
| Correction/Vacation of Judgment | Only for clerical or factual errors – not a full appeal |
Final Thoughts
Small claims court in Los Angeles offers a streamlined way to resolve disputes under $10,000. But if you’re the one bringing the case, you carry the burden of proof—and the risks of losing are real, even if they’re limited compared to regular civil court.
Before filing, consider mediation or negotiating a resolution outside of court. If you do go forward, be prepared, stay professional, and know what’s at stake.
