On March 21, 2020, the State of Indiana passed House Enrolled Act No. 1313. While the Act amended multiple portions of the Indiana Code, it significantly impacted actions brought in Indiana’s Small Claims Court by amending the statewide cap for the maximum award in a small claims dispute from $6,000.00 to $8,000.00. This amendment will become effective on July 1, 2020.
The Indiana Small Claims Court was created in order to provide individuals and business entities a quick, reasonably low-cost means of determining claims, including claims of personal injury, damage to personal property or real estate, landlord and tenant disputes, and disputes on accounts receivable. The Small Claims Court’s procedure is simple and lacks much of the formality required by Indiana’s Superior and Circuit Courts. Further, the increased predictability of the Small Claims Court allows clients and attorneys to reduce the time spent on dispute. As a result, clients incur lower legal fees and suffer less disruption to their lives.