For many South Africans, the thought of going to court conjures images of prohibitive costs, bewildering complexity, and the necessity of expensive legal representation. However, the legal system has a powerful tool designed specifically to bypass these barriers: the Small Claims Court (SCC).
Introduction: Your Accessible Path to Justice
Established by the Small Claims Court Act 61 of 1984, this forum was created to provide a speedy, affordable, and simple way for the average person to resolve civil disputes. It is a court for the "ordinary man and woman on the street" who might otherwise find the doors of justice closed due to financial constraints.
Key Feature
The single most defining feature of the SCC is that legal representation is not just unnecessary—it is prohibited. Neither party can have a lawyer represent them in the hearing, levelling the playing field and keeping costs to a minimum.
To guide individuals through the process, the clerk of the court is available to provide procedural assistance free of charge. While the court hearing itself is designed to be informal, it is critical to understand that the steps leading up to it are not. The process is governed by strict procedural rules that must be followed precisely.
Important Warning
A failure to adhere to the requirements for documents like the Letter of Demand or the summons can lead to a case being dismissed before it is even heard.
This guide will first help to determine if the Small Claims Court is the correct venue for a dispute by explaining the fundamental rules of eligibility.
Section 1: The Golden Rules - Checking Your Eligibility
Before embarking on the Small Claims Court journey, it is essential to confirm that a case meets the four fundamental requirements related to the claim's value, who is suing, who is being sued, and the correct court location.
Subsection 1.1: The R20,000 Question - The Monetary Limit
The jurisdiction of the Small Claims Court is strictly limited by a monetary ceiling. The maximum amount that can be claimed is R20,000. This limit was officially increased from R15,000 and came into effect on 1 April 2019.
If a claim exceeds this amount—for instance, if someone owes R22,000—a strategic decision must be made.
The claimant can choose to use the Small Claims Court by "abandoning" the portion of the claim that exceeds the limit. In this example, the claimant would sue for R20,000 and permanently forfeit the right to ever claim the remaining R2,000. This can be a worthwhile trade-off to benefit from the court's speed and low cost, but the decision to abandon part of a claim is final.
Subsection 1.2: Who Can Sue? (The Plaintiff)
The Small Claims Court is designed for individuals. Only a "natural person"—a human being—can initiate a claim as a plaintiff. If the claimant is under the age of 18, they must be assisted by a parent or legal guardian.
Important Rule
Crucially, "juristic persons" such as companies (Pty Ltd), close corporations (CC), and associations are prohibited from starting a case in the Small Claims Court. This rule underscores the court's purpose as a forum for private citizens, not for corporate litigation.
Subsection 1.3: Who Can Be Sued? (The Defendant)
While juristic persons cannot start a case, they can certainly be on the receiving end of one. A claim can be instituted against almost any person or entity, including other individuals, companies, and close corporations. This is a vital feature, as many common disputes, such as those over faulty goods or services, are with businesses.
Major Exception
There is, however, one major exception: a claim cannot be instituted against the State. This exclusion is broad and includes all spheres of government, from national departments to provincial bodies and, most commonly, local municipalities. Any dispute with a government entity must be pursued in the Magistrate's Court or High Court.
Subsection 1.4: Finding the Right Court - Jurisdiction Explained Simply
A claim cannot be filed at just any court; it must be brought in the Small Claims Court that has proper jurisdiction. Jurisdiction refers to the court's authority to hear a case, which is determined geographically. As a general rule, the claim must be instituted in the court district where:
- The defendant (the person or company being sued) resides, is employed, or carries on business.
- The entire cause of action arose. For example, if a car accident occurred in Cape Town but the defendant lives in Durban, the case could be brought in the Cape Town court.
The concept of "cause of action" can be technical, so the safest and most common approach is to institute the claim in the court that has jurisdiction over the defendant's home or work address. Small Claims Courts are situated at Magistrate's Courts, and the clerk can provide guidance on whether their court is the correct one for the matter.
Section 2: What Kinds of Cases Can You Bring? (Causes of Action)
The Small Claims Court is empowered to hear a wide variety of civil matters that arise in everyday life. These are referred to as "causes of action." The most common types of cases suitable for the SCC include:
Action for Repayment of Monies Lent
This involves claims for the recovery of money loaned to another person who has failed to repay it as agreed.
Breach of Contract
This is a broad category covering any instance where one party fails to fulfil their obligations under an agreement. Examples include a service provider not completing work that was paid for, or a client failing to pay an invoice for services rendered.
Actions for Damages
A person can sue for damages to their property caused by another's actions or negligence. A frequent example is a claim for the repair costs of a vehicle after a minor motor accident, where the total damage is assessed at R20,000 or less.
Action for Delivery of Property
This applies when a claimant seeks the delivery or transfer of specific movable or immovable property valued at no more than R20,000. An example would be suing a seller who took payment for a couch but failed to deliver it.
Actions Arising from Liquid Documents
These are claims based on a document in which a person clearly acknowledges their debt, such as a signed Acknowledgement of Debt, a promissory note, or a dishonoured cheque.
Action Against an Occupier of a Property
This typically relates to claims by a landlord against a tenant for arrear rentals, provided the outstanding amount does not exceed R20,000.
Does Your Case Fit?
If you recognize your situation in any of these common dispute types, you're likely on the right track. Take the next step and start building your case with a professionally drafted Letter of Demand—the essential foundation for any Small Claims Court action.
Start Your Letter of Demand →Section 3: Red Lines - What the Small Claims Court CANNOT Handle
To prevent wasted time and effort, it is equally important to know which matters are explicitly excluded from the SCC's jurisdiction. Attempting to bring any of the following cases will result in the clerk refusing to issue a summons:
Excluded Matters
- Claims with a value exceeding R20,000 (unless the excess is abandoned)
- Claims against any organ of the State, including municipalities
- Claims for the dissolution of a marriage (divorce) or customary union
- Claims concerning the validity or interpretation of a will or testament
- Claims concerning a person's mental capacity
- Claims for damages based on defamation (libel or slander), malicious prosecution, wrongful arrest or imprisonment, seduction, or breach of promise to marry
- Claims where specific performance is sought without an alternative claim for damages
- Claims for an interdict (a court order compelling or preventing a specific action)
- Claims based on the cession or transfer of rights
Quick Eligibility Check
| Question | Yes/No | Explanation |
|---|---|---|
| Is your claim for R20,000 or less? | ☐ | If more, you must abandon the excess amount to proceed. |
| Are you an individual (not a company)? | ☐ | Only natural persons can be plaintiffs. Juristic persons like companies cannot start a claim. |
| Are you suing an individual or a company? | ☐ | You can sue both natural persons (individuals) and juristic persons (companies, CCs). |
| Are you suing the government or a municipality? | ☐ | This is not allowed. The SCC has no jurisdiction over the State or its entities. |
| Is your claim for money, property, or damages? | ☐ | These are the typical civil claims handled by the SCC, such as unpaid loans, breach of contract, or property damage. |
| Is your claim for divorce, defamation, or a will dispute? | ☐ | These specific matters are explicitly excluded from the SCC's jurisdiction. |
✓ You're Eligible - Now What?
If you answered the eligibility questions correctly, you're ready to take the next step. Don't let this opportunity slip away—start your claim today with a Letter of Demand that meets all court requirements.
Begin Your Claim Process →Conclusion: Ready to Take the First Step?
Understanding these foundational rules is the first and most important step in using the Small Claims Court effectively. By confirming that a claim meets the monetary, plaintiff, defendant, and jurisdictional requirements, an individual can proceed with confidence, knowing they are in the right forum.
The SCC's design—low cost, speed, and the absence of lawyers—makes it a truly accessible path to justice for everyday civil disputes.
Your Path to Justice Starts Here
Now that you know the Small Claims Court is right for your dispute, don't wait—take action. Begin with the mandatory first step that could save you thousands in legal fees and weeks of uncertainty. Create your Letter of Demand now and put yourself on the path to resolution.
Start Your Letter of Demand Now →What's Next?
Now that it has been established that the SCC is the right place for the claim, the next crucial stage is to understand the exact procedure to follow. The next post in this series will provide a detailed, step-by-step playbook to launch a claim, navigate the court process, and ultimately get the justice deserved.
Read Next: Step-by-Step Process Guide →