Q: Can an S corp in TN file in small claims court on default loans without attorney representation? Same question in FL.
we extend loans to our customers that are always $5,800 or less and would like to find out if we can utilize small claims court to obtain judgment on defaulted loans.
A: In Fla., a corporate entity can generally proceed without an attorney in Small Claims Court, where the maximum amount sued for is $5K (plus court costs). Of course, that entails the principal or his/her designee being in Court in person, possibly on multiple occasions.
A:
Yes, Florida Small Claims Rule 7.050(a)(2), which states:
"Any business entity recognized under Florida law may be represented at any stage of the trial court proceedings by any principal of the business entity who has legal authority to bind the business entity or any employee authorized in writing by a principal of the business entity."
One caveat here is if you're engaged in certain activities, the court may require you to have an attorney. That's also in Rule 7.050: if the court finds that the plaintiff is "in the business of collecting claims and holds such claim being sued upon by purchase, assignment, or management arrangement in the operation of such business, the court may require that business entity" to have an attorney.
Currently, the limit for Florida small claims is $5,000, but the state is considering increasing that limit.
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