Civil Litigation and the Magisterial District Court (“Small Claims Court”)

Contact our Civil Litigation Attorneys serving Berks, Lehigh, Northampton, Bucks, Montgomery, Philadelphia, Chester, Delaware, Lancaster, Lebanon, Dauphin, Schuylkill, York, Carbon, Luzerne, Monroe, Columbia and Northumberland county.

There are different courts that can hear your civil litigation case in Pennsylvania. An experienced Civil Litigation Attorney can guide you to your best option.

Magisterial District Court (often known as “small claims court”) is the quickest and often least expensive option for applicable cases. Claims under $12,000 can be decided by Magisterial District Judges.

Small claims courts may hear civil cases, such as the following:

Breach of contract disputes
Collection on debts or loan repayments
Property damage claims
Landlord-tenant matters

PA Small Claims Court Process

Often, in civil cases, and before filing a claim, you should consider whether you will get paid if you obtain a judgment. It is sometimes necessary to determine if the defendant (person or entity being sued) is judgment-proof, which usually means they do not have a means of paying you. If they are deemed judgment-proof, taking them to court may be a waste of time and resources. Also, it is always necessary to ensure that you are filing your case within the statute of limitations period, which is typically two to four years in Pennsylvania, depending on the claim you are making. Consulting with an attorney regarding this issue is advised.

The next step is determining where to file the claim. Every Pennsylvania county (except Philadelphia) is divided into districts, and each district has a Magisterial District Judge. Factors that are considered when choosing which court to file in include but are not limited to where the defendant lives or does business and where the cause of the claim arose.

To file a case, it is necessary to file a complaint. The complaint requires you to identify your name and address, the name and address of the individual or business being sued, details of the claim (date, reason, etc.), and the amount you are seeking. You will also need to pay a filing fee and a fee for serving the complaint on the defendant which can be accomplished by certified mail or constable service. If you win the case, the defendant is required to pay the court costs back to you. The Magisterial District Judge will determine the hearing date.

Once a hearing is scheduled, it is necessary to prepare for it. There are multiple ways to prepare including the creation of a compelling statement that supports your complaint, gathering documents and evidence, finding witnesses, and determining how to present your evidence. You may win by default if the defendant does not appear for the hearing.

At the hearing, the parties will present their claims and defenses. Speaking before a judge can be intimidating, but you can hire an attorney to speak on your behalf. Both sides will also have the opportunity to question each other. After everyone has presented their case, the Magisterial District Judge will issue a decision immediately or within five days of the hearing.

What you do after the hearing depends on the Judge's decision and what the defendant does. Whichever party loses can appeal to the court of common pleas within thirty days of the Judge's decision. If that happens, the case will start all over again as if the first hearing never happened. If you win the case, and there is no appeal, it is up to you to collect the judgment. It may be necessary to execute on the judgment, which may include a personal property execution or, in limited circumstances, a wage garnishment.

How Can a Litigation Attorney Help?

You are not required to have an attorney in small claims court (or any court). However, an experienced civil litigation attorney can protect your interests. We can advise you of your best options, walk you through the process, and represent you in court.

If you need an attorney, you can call the law firm of Bingaman Hess at 610.374.8377 or find us online. Our experienced litigation attorneys will review your legal issues and recommend your best strategy.

< Older Post

Newer Post >

Mail

News & Information

Business Succession Planning

By Mahlon Boyer • May 30, 2026

Business succession planning is an important process that helps business owners prepare for the upcoming transfer of ownership and leadership. Whether the transition involves passing the company to family members, selling to business partners or transferring ownership to outside buyers, having a clear succession plan helps reduce uncertainty and protect the long-term security of the business. A careful plan can also minimize disputes, preserve business value and ensure continuity in periods of change. Planning for Business Transfer The first step in business succession planning is identifying how the business will be transferred and who will assume control. Business owners should evaluate their long-term goals, retirement plans, and the financial needs of both the company and their family members. Some owners choose to pass the business on to children or relatives who are already involved in operations. Others may transfer ownership to key employees, business partners or third party buyers. Each option has different legal, operational and financial consequences. A successful transition often takes years of preparation. Potential successors may need leadership training, operational experience and gradual increases in responsibility to ensure they are ready to effectively manage the business. Good communication with family members, partners and stakeholders is also important to avoid misinterpretations and conflict. Business owners should work with legal and financial professionals to create formal succession documents, update corporate records, and establish a realistic timeline for the transfer process. Use of Buy-Sell Agreements Buy-sell agreements are an essential part of many succession plans. These legally binding agreements specify what happens to the interest of a business owner if certain events occur, such as retirement, disability, death or voluntary departure from the company. A buy-sell agreement typically defines who may buy the shares of the departing owner, how the business interest will be valued and the terms of payment. This structure helps maintain stability and prevents ownership disputes that could disrupt operations. For businesses with multiple owners, buy-sell agreements provide understanding and protections for all parties involved. They can prevent unwanted external ownership and ensure that remaining owners retain control of the company. Funding mechanisms are also important. Many businesses use life insurance policies to fund buyouts in the event of an owner's death. This allows surviving owners or family members to complete the transfer without putting financial hardship on the business. Tax Considerations Tax planning is an important part of business succession planning. If the transfer of ownership is not well planned, the business owner and successor will face a substantial tax liability. Depending on how the transfer takes place, the owners may face capital gains, estate, or gift taxes. With good planning, these tax burdens can be reduced with trusts, step-by-step ownership transfers, family partnerships, or changing the type of business entity. Another important factor is valuation. A proper valuation of a business is important for determining tax liability and ensuring that everyone involved in the transfer is treated fairly. Business owners should regularly review their succession plans with accountants, tax advisors, and attorneys, as tax laws are often changing. Regular updates keep the plan in line with changing legislation and the business’s needs. Let Us Help You Navigate the Essentials of Business Succession Planning Don’t wait! Talk to one of the experienced estate planning attorneys at Bingaman Hess today at 610.374.8377 or contact us online. This article is for informational purposes only and does not constitute legal advice. No one may rely on this information without consulting an attorney. Anyone who attempts to use this information without attorney consultation does so at their own risk. Bingaman Hess is not and shall never be responsible for anyone who uses this information. It is not legal advice.