Filing a claim
How to sue a company: small claims, lawsuits, and class actions
To sue a company, send a demand, check for an arbitration clause, then file in small claims, state, or federal court before your deadline. Costs, steps, and options.
To sue a company, you first try to resolve the problem in writing, then check whether your contract requires arbitration, pick the right court for the amount you are owed (small claims for modest amounts, state or federal court for larger ones), file a complaint before your statute of limitations runs out, and formally serve the company. For small losses shared by many customers, joining or starting a class action is often more practical than suing alone.
Here is each step with real costs and limits, plus the government complaint channels that sometimes get results faster than a lawsuit.
Key takeaways.
- Start with a written complaint or demand letter; many disputes end there, and the paper trail helps if they do not.
- Check your contract for an arbitration clause, which may require you to bring your claim in private arbitration instead of court.
- Small claims court is the cheapest route for modest amounts; in California, individuals can sue for up to $12,500 and filing fees run about $30 to $100.
- Federal court filing costs $405 ($350 plus a $55 administrative fee), and a state-law case between citizens of different states needs more than $75,000 at stake.
- If the company harmed many people the same way, a class action may be the better route, and it costs class members nothing upfront.
Step 1: Put your complaint in writing
Before suing, give the company a clear chance to fix the problem, and create a record. Write to customer service or the company's legal department describing what happened, what you want (a refund, repair, credit correction, or payment), and a reasonable deadline. Keep copies of everything.
If that fails, send a demand letter: a short, factual letter stating the amount you are owed, how you calculated it, and that you will pursue legal action if it is not paid by a specific date. Some state consumer protection laws require a written demand before you can sue for certain damages, so check your state's rules or ask a lawyer.
Government complaints can also move companies. The CFPB forwards complaints about financial products to the company and says most companies respond within 15 days. The FTC takes fraud reports at ReportFraud.ftc.gov, and your state attorney general's consumer protection office accepts complaints too. These agencies do not act as your lawyer, but complaints create pressure and can feed enforcement cases.
Step 2: Check for an arbitration clause
Read the contract, terms of service, or account agreement you accepted. Many companies require disputes to go to individual arbitration and ban class actions. In AT&T Mobility LLC v. Concepcion, decided April 27, 2011, the Supreme Court held that the Federal Arbitration Act preempts state rules that treated many consumer class action waivers in arbitration agreements as unenforceable.
An arbitration clause does not end your claim. It changes the forum. Many clauses let either side choose small claims court instead, some require the company to pay most arbitration fees, and some had an opt-out window when you signed up. A lawyer can tell you whether the clause is enforceable and which option is best. See how a class action lawsuit works for how arbitration fights play out in class cases.
Step 3: Choose the right court
| Option | Best for | Key limits |
|---|---|---|
| Small claims | Modest refunds and damages | Dollar cap set by each state |
| State court | Larger state-law claims | Usually need a lawyer |
| Federal court | Federal-law claims, big cases | $405 to file; jurisdiction rules |
| Arbitration | If your contract requires it | Private; limited appeal |
| Class action | Same harm to many people | Needs class counsel |
Small claims court. Designed for people without lawyers, with limits that vary by state. California's courts say individuals can generally sue for up to $12,500 in small claims (businesses up to $6,250), with filing fees between $30 and $100, and a hearing typically about one to two months after filing. In California you cannot have a lawyer represent you in court, and the person who filed cannot appeal a loss.
State court. For claims above the small claims limit under state law, such as breach of contract, fraud, or consumer protection claims.
Federal court. Available when your claim arises under a federal law (for example the TCPA, FCRA, or FDCPA) or when you and the company are citizens of different states and more than $75,000 is at stake, under 28 U.S.C. 1332(a). The filing fee is $350 under 28 U.S.C. 1914 plus a $55 administrative fee, and people who cannot afford it can ask to proceed without paying.
Step 4: File, serve, and respond
Filing a lawsuit starts with a complaint (or a small claims form) naming the company exactly as it is legally registered. Your state's secretary of state business search shows the legal name and the company's registered agent.
After filing, you must formally notify the company, called service of process. Under Federal Rule of Civil Procedure 4(h), a corporation can be served by delivering the summons and complaint to an officer, a managing or general agent, or an agent authorized to receive service. In practice that is usually the registered agent. In federal court, the company generally has 21 days after service to respond, or 60 days if it waived formal service. State rules are similar but vary.
From there, expect the company to file a motion to dismiss or an answer, followed by evidence exchange and, in many cases, settlement talks. Most civil cases settle before trial.
When a class action beats suing alone
If the company's conduct affected many customers the same way, such as a hidden fee, an overcharge, a data breach, or unwanted robocalls, a class action lets one case recover for everyone. Under the TCPA, each unlawful call or text can carry $500 in statutory damages, which makes a class case practical when thousands of people got the same calls. You pay nothing upfront, lawyers are paid from the recovery with court approval, and you may only need to file a claim form if it settles. Check whether a case already exists on our lawsuits and open settlements pages, such as robocall lawsuits, overdraft fee lawsuits, or data breach lawsuits.
Suing alone makes more sense when your loss is large, personal, or unique, such as a serious injury or a major financial loss. Laws that make the company pay your attorney's fees if you win, like the Fair Credit Reporting Act, make individual cases practical even for modest amounts; see credit report error lawsuits. For a full comparison, see class action vs. individual lawsuit and how to start a class action lawsuit.
What to gather before you sue
- Proof of the transaction: receipts, invoices, statements, order numbers.
- Proof of the problem: photos, the defective product, screenshots, call logs, recordings where legal.
- Your written complaints and the company's replies.
- Your damages: repair estimates, medical bills, lost wages, fees paid.
- The contract or terms of service.
- A dated timeline of events.
If you plan to use small claims court in California, keep in mind the $12,500 limit for individuals; asking for more means waiving the excess or filing in a different court. If you are unsure whether your situation is a small claims matter, an individual lawsuit, or part of a class action, a free case review takes about two minutes and connects you with independent attorneys who handle these cases.
Common questions.
How do I sue a company?
Send a written complaint or demand letter first, check your contract for an arbitration clause, then file in the right court before your statute of limitations expires: small claims for modest amounts, state or federal court for larger claims. After filing, you must formally serve the company, usually through its registered agent.
Can I sue a company without a lawyer?
Yes. Small claims court is designed for people without lawyers, and in some states, including California, lawyers cannot represent parties at the small claims hearing. For larger or complex cases, most people hire a lawyer, often on contingency.
How much does it cost to sue a company?
Small claims filing fees are usually modest; California lists $30 to $100. Filing a federal lawsuit costs $405, including a $55 administrative fee. Lawyers in consumer and injury cases often work on contingency, so you may pay nothing unless you recover.
Can I sue a company if I agreed to arbitration?
Often you must bring the claim in arbitration instead of court, because the Supreme Court has upheld most consumer arbitration clauses and class waivers. Many clauses still allow small claims court, and some can be challenged, so have the exact terms reviewed.
What is the maximum I can sue for in small claims court?
It depends on the state. In California, individuals can generally sue for up to $12,500 and businesses up to $6,250. Check your state court's website for its limit.
Should I sue a company myself or join a class action?
If many people lost a similar small amount, a class action is usually more practical and costs nothing upfront. If your loss is large or unique, such as a serious injury, an individual lawsuit may recover more.
Sources.
Statutes, court rules, appellate opinions, and bar publications we relied on. See our editorial standards.
- 1.California Courts Self-Help: Small claims in California
- 2.28 U.S.C. 1914, district court filing fees (Cornell LII)
- 3.U.S. Courts: District Court Miscellaneous Fee Schedule
- 4.28 U.S.C. 1332, diversity jurisdiction (Cornell LII)
- 5.Federal Rule of Civil Procedure 4 (Cornell LII)
- 6.Federal Rule of Civil Procedure 12 (Cornell LII)
- 7.AT&T Mobility LLC v. Concepcion, 563 U.S. 333 (2011) (Cornell LII)
- 8.CFPB: Submit a complaint
- 9.FTC: ReportFraud.ftc.gov
- 10.29 U.S.C. 255, FLSA statute of limitations (Cornell LII)
- 11.47 U.S.C. 227, TCPA private right of action (Cornell LII)
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