Q: I was hired as an exclusive agent to sell a home, and brought in a full price offer. Seller, out of the blue, decided he did not want to sell. I completed what I am supposed to do, and the work was considerable. Many have told me I should be paid my commission ($12,500), even though the buyer decided not to fight the seller. While I can get up to $10,000 Small Claims, is it worth it?
-H.B., Seal Beach
A: If you have a solid case, my answer is yes, it is worth it. Ten thousand dollars is not chump change. You could go to the limited jurisdiction court (where you can seek up to $25,000), but the filing fee is much higher, the time to trial a lot longer, and although the level of activity is not as broad as in an unlimited jurisdiction case, there still can be quite a bit of time and effort required. Small claims court, which nowadays you can file online, is far more streamlined, even if there is an appeal. Your judgment, if you win, garners 10% interest per year, and you may be awarded allowable costs. Also, you never know: Once served, the seller may rethink things on paying your commission, or at least seek to negotiate a deal.
Q: We won in small claims, but the defendant has now appealed. It is a “trial de novo.” What exactly is that and what should we expect?
-S.T., Inglewood
A: It is a “new trial,” with a different judge, the case is presented again, and unlike before, each side can have a lawyer. There also is a code provision that for good cause, and when necessary to achieve substantial justice, the judge hearing the appeal may award reimbursement to you of attorney fees incurred (up to $150), and actual loss of earnings and expenses for transportation and lodging in connection with the appeal (again, up to $150). Further, if the judge determines the appeal is not based on good faith or substantial merit, and was intended to harass or delay, the court can instead award you up to $1,000 in attorney fees and up to $1,000 in transportation and lodging.
Small Claims Court
The California Courts have useful information online about small claims court. In your web browser, simply type: “California courts, self-help, small claims court.”
Ron Sokol is a Manhattan Beach attorney with more than 35 years of experience. His column, which appears in print on Wednesdays, presents a summary of the law and should not be construed as legal advice. Email questions and comments to him at RonSEsq@aol.com or write to him at Ask the Lawyer, Daily Breeze, 400 Continental Blvd, Suite 600, El Segundo, CA, 90245.
