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WY Alternatives to Small Claims Court

Is a customer refusing to pay for repairs you made to her car? Were you involved in a fender-bender and the other driver won't pay to have your car fixed? These are the kinds of problems that are handled by the Wyoming small claims court. It's a court that's designed to be a fast, informal, and inexpensive way for people to get the money they're owed.

What if you don't like courtrooms or the legal process and you just don't want to file a lawsuit, not even in the small claims court? There are some alternatives to filing a lawsuit in small claims court, such as:

  • Personal negotiation
  • Mediation
  • Arbitration

Any one of these tactics may help you get your money without having to step foot into a courtroom.

Personal Negotiation

Personal negotiation should be your first step, even if you're prepared to file a small claims lawsuit. All this involves is a simple phone call to the person who owes you money asking that she pay what's owed to you. Be polite and cordial. Maybe you can work out an agreement that benefits everyone.

If your first attempts aren't getting you anywhere, then consider writing a demand letter. It's exactly what it sounds like: A letter demanding that the other person pay you within a specific period of time, like 15 or 30 days. To be effective, the letter should:

  • Briefly explain why you think you're owed money
  • State exactly how much money you're demanding
  • Clearly state that you intend to take legal action, including filing a lawsuit in small claims court, if you're not paid within the time given (15 or 30 days)

At the very least, you should mail the letter certified mail, return receipt requested. This requires the recipient to sign for the letter, and you'll get a "return receipt" showing that it's been delivered. When you get the return receipt, make sure you keep it (along with a copy of your letter) so that, if necessary, you can prove later that it was in fact received.

Mediation

Mediation is an informal meeting between you, the defendant, and a neutral third party, called a "mediator." Most of the time you'll meet together, but sometimes you and the defendant will meet separately with the mediator. The mediator's job is to help you both reach an agreement. She can suggest different options to help you reach that agreement, and she may even suggest a particular course of action, but she can't force or order either of you to do anything.

Both you and the defendant have to agree to mediate the dispute, otherwise it doesn't work. Depending on your and the defendant's willingness to negotiate and compromise, it can lead to a very quick and mutually satisfactory resolution of your claim.

Some Rules to Know

There are some things to keep in mind about mediation, such as :

  • It's not binding, meaning that, even if you and the defendant reach an agreement, the mediator can't enforce it. So, if the defendant later breaks or "breaches" the agreement, you may need to start the whole process over again (personal negotiation, writing a demand letter, filing a lawsuit, etc.)
  • The mediator can't provide legal or personal advice. She can only suggest possible ways to settle the matter and help you both make sure that you reach an agreement that's good for you both
  • It's you and the defendant that make the terms of the agreement, not the mediator. The mediator will only write down or document what you've agreed to
  • The mediator doesn't make a "decision" in the case like a judge would in the small claims court. That is, she doesn't decide who "won." Rather, she merely helps you reach an agreement
  • At any time, either party can withdraw from mediation
  • If you and the defendant don't reach an agreement through mediation you can still file a lawsuit in small claims court. In other words, you don't waive your right to file suit simply because you agree to mediation. This is true for the defendant, too, if he has a "counterclaim" against you, that is, he claims that you owe him money
  • Attorneys are usually not present during mediation. You can, however, hire an attorney to advise you about your claim, if you'd like
  • The costs of mediation depend on the mediator and the nature of the dispute. Some mediators charge between $25 and $100 per hour, but in most cases you and the defendant will share these costs

Arbitration

Arbitration is very similar to mediation. Here, a neutral third party, called an arbitrator, listens to both sides of the story, just like a mediator does, in the hopes of helping you reach an agreement. However, there are some important differences between arbitration and mediation:

  • If you and the defendant can't reach an agreement, the arbitrator will make a decision in the case, that is, decide if you're going to get paid and how much
  • The arbitrator's decision is binding, unless you and the defendant agree beforehand that it isn't binding. This means that it can be enforced by the arbitrator and, if necessary, the courts, if you or the defendant don't follow the decision
  • After going through arbitration, you can't file a lawsuit in a Wyoming small claims court
  • If your claim involves a contract - like a lease or a contract for the sale of goods or services - it may require that any dispute over the contract must go to arbitration. If this is the case, a judge may order you to arbitrate the dispute
  • Arbitration can be expensive. An arbitrator may charge over $125 for a four-hour block of time to listen to and decide your case. But, if you win, the costs of arbitration are usually added to the amount the defendant owes you

As with mediation, you and the defendant have to agree to arbitration. However, you both also have to agree on the arbitrator. The circuit court for your county may have a list of arbitrators that you may contact. Or, you can contact the American Arbitration Association for a list of arbitrators in your area.

Questions for Your Attorney

  • I can't get the person who owes me money to answer my phone calls or letters. Is there any benefit to offering to mediate?
  • The defendant agreed to mediate my claim, but now he won't meet with or talk to the mediator. What should I do now?
  • How much will you charge me to file a lawsuit and represent me in small claims court? I mean, will the suit and the court fees cost me less than an arbitrator?
Related Resources on Lawyers.comsm

- Start the process with our Wyoming Small Claims Worksheet
- Next in the Small Claims series: What is Small Claims Court in Wyoming?
- Success In Small Claims Court
- Small Claims Court Terms
- Defending a Small Claims Court Case
- Visit our Small Claims Court Forum for more help

Related Web Links

- Wyoming Judicial Branch
- Mediate Wyoming

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