Disputes over horse-related situations vary in the way they are litigated

Many inquiries that I get from prospective clients involve disputes over relatively small amounts of money. A typical example would be a dispute over a training fee or boarding bill. Another example would be the refusal to refund a deposit for the purchase of a horse. After review of the case with the prospective client, the discussion ultimately leads to the issue of attorney fees. This is when reality usually sets in.

Some people believe that the “loser pays.” Of course, most people also believe they can’t lose. However, the general rule is that each party pays his or her own legal fees. Unless the dispute involves a written contract that specifically addresses the issue of attorney fees, each side will be responsible for his or her own legal fees and expenses. Only rarely will attorney fees be charged to the other side.

Other people believe that the attorney fee is based on a percentage of the recovery. Although this may be true in some contingency matters (i.e. most personal injury cases), it is rarely the case in a relatively small dollar amount dispute. Most attorneys will not accept a matter on a contingency basis unless they are fairly confident that they will be compensated for the time, expense, and risk involved in litigating the matter. Unfortunately, very often it takes just as much time and expense to litigate a small matter as it does to litigate a larger matter.

quires a $5,000 retainer to litigate the case, it is obviously not worth retaining the attorney. So, what can you do? Are you shut out of the courthouse?

Every state has a small claims court, although the name will vary depending on the state. These courts are typically situated within each county and are established to resolve disputes involving a relatively small amount of money. The maximum amount of money within the jurisdiction of a small claims court varies from state to state. For example, the small claims court or “Special Civil Court” in New Jersey will hear matters involving disputes of $15,000 or less. However, the small claims court or “Justice Court” in Texas will only hear cases involving disputes up to $10,000.

Small claims courts are usually designed for people to represent themselves without hiring a lawyer. You’ve probably

Every state has a small claims court, although the name will vary depending on the state. These courts are typically situated within each county and are established to resolve disputes involving a relatively small amount of money.

Consequently, the only real option in hiring an attorney in small cases is to retain the attorney on an hourly fee basis. This is easier said than done. Hourly rates charged by attorneys can vary considerably. An attorney’s geographic location, background, experience, and competence will drive the hourly rate. The lowest rates are likely to be between $200 to $250 per hour with the highest range being $500-plus per hour. Usually, the attorney will require a retainer. This is like a deposit, which the attorney will bill against as the case proceeds. If the case concludes before the retainer is exhausted, then you will get a refund of the balance. On the other hand, if the case drags on for a long period of time, then you may need to replenish the retainer from time to time until the case is over. The amount of the retainer requested can be for only a few hours of initial work or it may be for the full estimated time it will take to fully litigate the matter. This can be negotiated between the prospective client and the attorney.

Unfortunately, when the cost-benefit analysis is done, it may be cost prohibitive to retain the services of an attorney. You may literally be “throwing good money after bad.” If the dispute involves the sale of a $5,000 horse and the attorney re- seen one of the many daytime television shows where litigants go to court and appear before a judge. Although there will be some differences in procedure (and seriousness), the process is generally the same. While the rules of evidence are usually relaxed, litigants should be prepared to appear before a judge and present all your documentary evidence for the judge to see. Also, any witnesses should be prepared to come to court for live testimony. If you have any questions about the proper procedure, then you can usually contact the court and speak to someone who can answer any questions and also provide you with the necessary paperwork to complete. The court staff are generally very helpful.

Katherine Jarve is a partner at the Marlton, New Jersey law firm of Jarve Granato Starr, LLC. She is licensed in New Jersey and Pennsylvania and maintains a practice in personal injury and civil litigation, including equine related issues. Katherine spent her childhood competing on the national AQHA show circuit. This article is for informational purposes only and is not intended to be legal advice. If you have a specific legal question or problem, consult with an experienced equine law attorney. Questions, comments or suggestions can be e-mailed to kjarve@nj-triallawyers.com.