Posted on: Monday, August 16, 2004
Fewer people file small claims
By Ken Kobayashi
Advertiser Courts Writer
On the morning of Feb. 2, Marilyn Labayog's 1993 Acura Legend was splattered with grease.
Photos by Andrew Shimabuku • The Honolulu Advertiser When Labayog noted that the car's paint and molding were damaged, Mettler said he'd pay the bill.
She asked for $2,500 to make it right. Mettler balked.
That's why the matter came last week before Honolulu District Judge Gerald Kibe, who rendered a final, binding decision that cannot be appealed.
Welcome to Small Claims Court, where disputes involving amounts up to $3,500 can be resolved quickly, without lawyers.
The cases range from disputes over personal debts, dental or veterinarian malpractice, rental deposits, refunds from auto shops and just about any kind of disagreements over money.
No sassy TV judges The court is a version of television's "Judge Judy," minus the studio audience and the sassy attitude of TV judges who like to harangue the parties for dramatic effect.
Honolulu Small Claims Court judges generally try to put the parties at ease. They explain that the process is informal and encourage the parties to settle things between themselves, even before their case goes to trial.
But fewer and fewer people are going to Small Claims Court. The number of cases on O'ahu has steadily decreased, from 3,809 in fiscal year 1993-94 to 1,743 in fiscal year 2002-03. There may be a slight increase this year — with a total of close to 2,000 cases for fiscal year 2003-04 — but statistics won't be available until later this month.
What's happening here appears to be out of sync with national trends. The most recent data from the National Center for State Courts shows the total number of small-claims cases for 28 other states and Washington, D.C., has remained steady at about 1.2 million a year.
Examining the cause
Here are some highlights of how the system works: • Small Claims Court judges rule on monetary disputes involving no more than $3,500. • You may be represented by lawyers, except in security deposit landlord-tenant disputes. But because the winning side is not awarded attorney fees, you're responsible for the fees, which could be more than the amount you sought or the amount you would have to pay. • One advantage is that your dispute will be resolved quite quickly. The case is heard within 30 days of filing. One downside is that the decision by the Small Claims judge is final. There is no appeal. • You must file your claim at Honolulu District Court, at 1111 Alakea St. The filing fee is $35, although the judge may waive it based on financial hardship. The hearing will be held at the courthouse for the division where the defendant resides. O'ahu has seven divisions: Honolulu, 'Ewa, Wai'anae, Wahiawa, Waialua, Ko'olaupoko (Waimanalo to Kualoa) and Ko'olauloa (Kualoa to Waimea). • If a claim is filed against you, you may file a counterclaim. The filing fee is $10. If the counterclaim is for more than $5,000, either side may ask for a jury trial in Circuit Court. • Dress appropriately for court — no shorts, slippers or tank tops. • For information, call 538-5629 or go to the state judiciary Web site. The site includes information for Neighbor Island cases and where residents can file claims on their islands. Court clerks can help you with the procedure, but cannot give legal advice. • • • Small-claims cases The number of small-claims cases has declined each year on O'ahu for a decade. Source: State judiciary "Just a guess, but perhaps independent mediation/arbitration, not annexed to the court, has caused a drop in the cases filed in Small Claims Court," said Hoolulu District Judge Barbara Richardson. Tracey Wiltgen, executive director of Mediation Center of the Pacific Inc., said the center's caseload has grown, but she couldn't definitively pinpoint the increase to small claims alone because the center helps to resolve all kinds of cases.
"That's definitely the trend, and I think we'll continue to see it grow," she said.
People who file small-claims cases in court also are required to try to mediate their disputes.
When the parties show up, the judge tells them they first must meet with a volunteer mediator on the spot. If they don't settle, the parties return to the courtroom that same day.
Wiltgen's Mediation Center of the Pacific provides the Small Claims Court with volunteer mediators, and about a third of parties settle there. Parties also are free to reach an agreement without mediation or a trial.
No-shows can't win
Other cases that come to Small Claims Court in Honolulu are quickly resolved if the defendants don't show up, resulting in default judgments.
But on Wednesday afternoon, Labayog and Mettler could not settle through mediation and were still at odds over how much was going to be paid for the greasy mess.
They returned to the courtroom on the 10th floor of the Honolulu District Court building on Alakea Street for trial.
Labayog, manager of the shopping center, told Judge Kibe that Mettler acknowledged he was responsible for the splattered grease and told her, "I owe you a car wash."
She said she didn't expect him to spray wash the car.
"I was dumbfounded," she said.
She presented Kibe with photographs of damages to her car and three repair estimates, the lowest being $2,502.64.
Mettler, owner of his cleaning business, acknowledged that the water from his pressure spray and the grease spilled over from the roof and onto her car. He asked Labayog who owned the car and found it belonged to her.
But he said he didn't promise a car wash and said he told her he would "spray it off."
"I'm sure she knew what I was going to do," he said.
Mettler also disputed the severity of damages. He acknowledged that he caused some of the damages in the photographs, but not all of them.
He said he thought he'd pay $500 to $800 but told her he couldn't afford the $2,500.
Kibe listened patiently, asked questions and reviewed the photos and repair estimates.
In the end, he said he found Labayog more believable than Mettler. He found Mettler liable for the damages.
The judge awarded Labayog $2,502.64, plus $72 to cover her costs, including the $35 court filing fee.
"It was his decision," Mettler said as he left the courtroom. "He knows more about it than I do. I'm not very happy about it, but that's the way it goes."
Labayog said it was her first time in Small Claims Court.
"Anytime it goes your way, it's always a good outcome," she said.
She said she hadn't consulted with a lawyer, but learned about the process after getting documents from the court and reviewing the judiciary's Web site.
Labayog said she'd recommend the process to others.
"It's cheap," she said. "You don't have to pay an attorney to do it."
But she warned that it takes time and preparation.
"They're going to have to know they better do their homework first before they come to court," she said. "They can't wing it."
Reach Ken Kobayashi at kkobayashi@honoluluadvertiser.com or 525-8030. Correction: Parties in Small Claims Court may be represented by lawyers. A photo caption in a previous version of this story was incorrect.
Michael Mettler had used a pressure sprayer to wash grease from a hood vent above a restaurant at a Waipahu shopping center, and the spillover fell onto Labayog's parked car. To take care of the problem, he decided to spray-wash the car.
The courtrooms at the District Court building are often far from packed during Small Claims Court proceedings. At the hearing of small-claims disputes, plaintiffs and defendants either make their own cases to the judge, or they may be represented by lawyers.
Defendant Michael Mettler, center, tells the judge his side of the story involving a $2,500 dispute while plaintiff Marilyn Labayog looks on.
Marilyn Labayog displays photographs of grease and water damage allegedly done to her car by defendant Michael Mettler.
State district judges who handle small claims and other observers speculate that the decline in O'ahu's cases could simply mean that people don't think it's worth fighting for a relatively small dollar amount, especially in an improving economy. An aggressive push on O'ahu to resolve disputes through mediation and arbitration outside of court also may be responsible for the decline.
Small Claims Court, Honolulu
Fiscal year
Cases filed
2002-03
1,743
2001-02
1,772
2000-01
2,086
1999-00
2,110
1998-99
2,421
1997-98
2,897
1996-97
3,222
1995-96
3,288
1994-95
3,504
1993-94
3,809
