by Carol Rucker

Created on: August 11, 2011   Last Updated: August 12, 2011

Small claims courts were set up as a forum for resolving small dollar legal issues, but often the parties can settle their claims before they file. The dispute may be the result of a simple misunderstanding. Anger on behalf of one or both parties may have prevented an honest exchange of facts. In some cases the fault may be clear, but the demands may be excessive. Whatever the circumstances, most cases of one party owing money to another can be handled outside the courtroom with a little effort.

Insurance companies regularly investigate and negotiate liability cases to conclusion long before the situations turn ugly. Parties make payment agreements without ever seeing the inside of a courtroom. In liability cases with or without insurance, a party seeking damages may be able to resolve their case by laying out the facts in an organized manner. If you write a letter before filing your small claims action you will demonstrate to the court that you are acting in good faith should your dispute end up in court anyway. Here are a few tips on presenting your case.

Send your correspondence by snail mail

Even with a proper IP address, you may never prove you actually emailed your demands. If you can prove you sent an email, you still may not be able to prove that it didn't go to auto delete while sitting in someone's spam folder. With proper proof of mailing, a return receipt, priority scan or overnight signature documentation, you have the proof that your letter was sent and that it arrived. Although you can't prove that someone got it and read it.

Address your letter to the right person

Before you send your letter make a phone call to find out who you should send it to. If you are writing to a large business find out the name of the risk manager or other person who handles small claims. If you write to an insurance company, find out the claims person handling your case. Without the right addressee, your letter could sit around for days without any attention whatsoever.

Include appropriate information for identification

Insurance companies are big on claim and policy numbers and the name of their insured. If you don't have these vital details, don't send your letter until you get them.

Research your position and cite applicable laws if you can

You may believe you are in the right and that the other person owes you money, but you need to know where you stand legally. Research your position just to be sure. Go online to check out the state and local laws that apply to

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