California SB 71: Small Claims Caps for Individuals and Businesses

As of January 1, 2024, the California small claims court limit is $12,500 for individuals and $6,250 for businesses and other entities. Those ceilings come from Senate Bill 71, signed on October 13, 2023, which also raised the limited civil case threshold from $25,000 to $35,000.¹ The update to the Code of Civil Procedure was the first adjustment in roughly a decade, meant to account for inflation and keep everyday disputes in the simpler court tier.

The $12,500 Cap for Individuals

If you are a natural person, meaning an individual or a sole proprietor, you can bring a small claims case for up to $12,500 under Code of Civil Procedure Section 116.221.² The prior cap was $10,000.³

The amount you ask for is what matters. Attorney fees, interest, and court costs are not counted toward the limit when a case is classified, but your underlying claim for damages has to fit within the ceiling.

If your claim is only a little over $12,500, you can waive the excess and still file in small claims court. You give up any right to recover the waived portion, so the trade-off is real: you keep the speed and informality of small claims but accept a lower maximum recovery.⁴

The $6,250 Cap for Businesses and Entities

Corporations, partnerships, limited liability companies, government agencies, and other non-individual parties face a lower ceiling. Under Section 116.220, these entities can bring small claims cases only for amounts up to $6,250.⁴ The limit applies to every case the entity files, not just certain categories.⁵

So the same dispute can land in different courts depending on who is suing. A $10,000 unpaid invoice is a small claims case if the plaintiff is a sole proprietor, and a limited civil case if the plaintiff is an LLC.

Lower Caps for Guarantor and Surety Claims

Section 116.220 carves out two more thresholds that are easy to miss. If you are a natural person suing a paid surety, meaning a company that charges for its guarantee services, the cap is $8,125. If you are suing an unpaid guarantor, the cap drops to $3,125.⁴

Both are lower than the general $12,500 individual limit. Check which category your defendant falls into before you file, because filing above the applicable cap can cost you time.

The Two-Case Annual Limit on Larger Claims

Even if your claim fits the dollar ceiling, there is a separate restriction on frequency. No party, whether an individual or a business, may file more than two small claims cases seeking more than $2,500 in the same calendar year.⁶ Cases at or below $2,500 do not count toward the limit.

This rule prevents repeat filers from using small claims court as a volume collection tool for larger debts. If you expect to bring multiple sizable claims in a year, limited civil may be your only route after the second one.

When Your Claim Is Too Big: Limited and Unlimited Civil

Claims above the small claims ceiling but at or below $35,000 go to limited civil court. SB 71 raised that threshold from $25,000. Under Section 85, a case qualifies as limited civil only if the amount in controversy, meaning the damages, recovery, or property value at issue, excluding attorney fees, interest, and court costs, stays at or below $35,000.⁷

Limited civil cases sit between small claims and full litigation. Discovery is capped at a combined total of 35 interrogatories, document requests, and requests for admission, plus one deposition.⁸ Motions to strike are permitted only on narrow grounds, and special demurrers are not allowed.⁹ You can hire an attorney, and the process looks more like traditional litigation than a small claims hearing.

Any case where the amount in controversy exceeds $35,000 is classified as unlimited civil. There is no cap on recovery, and the full range of pretrial procedures is available: unlimited discovery, expert depositions, jury trials, and complex motions practice.¹

Quick Summary of the Tiers

Small claims, individual plaintiff: up to $12,500
Small claims, business or entity plaintiff: up to $6,250
Small claims, paid surety defendant (individual plaintiff): up to $8,125
Small claims, unpaid guarantor defendant (individual plaintiff): up to $3,125
Limited civil: more than the small claims cap, up to $35,000
Unlimited civil: more than $35,000

No Attorneys at the Small Claims Hearing

One feature of small claims court shapes the decision as much as the dollar limits do. Section 116.530 bars attorneys from conducting or defending a small claims action at the hearing itself. The exceptions are narrow: an attorney who is personally a party to the case, or a partnership or professional corporation where all partners or officers are attorneys.¹⁰

You can still consult a lawyer before and after the hearing. They can help you gather evidence, prepare your presentation, advise on strategy, and represent you if you appeal or need to enforce a judgment. They just cannot argue the case at the small claims hearing.¹⁰ The rule keeps the process accessible and prevents one side from gaining a lopsided advantage by hiring counsel.

Filing Fees Tied to the Amount You Sue For

Small claims filing fees are scaled to the size of your claim:¹¹

Up to $1,500: $30
$1,501 to $5,000: $50
$5,001 to $12,500: $75
Frequent filers (more than 12 cases in the past 12 months): $100

If you cannot afford the fee, you can request a waiver using form FW-001. You generally qualify if you receive public benefits, have a low income, or lack enough income to cover both basic household needs and court fees. The request is signed under penalty of perjury, and the court may ask for supporting documentation.¹²

Deciding Which Tier Fits Your Case

The dollar limit is the starting point, not the full answer. If your claim fits under $12,500 as an individual (or $6,250 as a business), small claims is faster, cheaper, and does not require an attorney. The trade-off is that if you are the plaintiff and lose, you generally cannot appeal your own claim.¹³

If your claim is just over the ceiling, you have a choice. Waive the excess and stay in small claims, or file in limited civil and keep the full amount in play. The right answer depends on how much you would be giving up, how complicated the facts are, and whether you want the option to use discovery and counsel.

Whichever tier you choose, the statute of limitations applies the same way. Personal injury and wrongful death claims must be filed within two years of the injury or death.¹⁴ Written contract disputes generally have four years, oral contracts two, with variations and tolling rules depending on the facts. Miss the deadline and the case gets dismissed no matter how strong the underlying claim is, so confirm the applicable period before you file.

1
California Legislative Information. California SB-71 – Jurisdiction: Small Claims and Limited Civil Case
2
California Legislative Information. California Code of Civil Procedure 116.221 – Small Claims Court
3
Digital Democracy. SB 71: Jurisdiction: Small Claims and Limited Civil Case
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California Legislative Information. California Code of Civil Procedure 116.220
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California Courts. Small Claims in California
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California Courts. Deciding Between Small Claims and Limited Civil
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California Legislative Information. California Code of Civil Procedure 85
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California Legislative Information. California Code of Civil Procedure CCP 94
9
Justia. California Code of Civil Procedure 90-100 – Economic Litigation for Limited Civil Cases
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California Legislative Information. California Code of Civil Procedure CCP 116.530
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California Courts. File Your Plaintiff’s Claim
12
Judicial Council of California. Information Sheet on Waiver of Superior Court Fees and Costs
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California Legislative Information. California Code of Civil Procedure 116.710
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California Legislative Information. California Code of Civil Procedure 335.1