The right path depends on how much money is at stake, how complex the dispute is, and whether the contractor has a defense. This guide gives you an honest comparison of both options.
California small claims court allows individuals to resolve disputes up to $12,500 without an attorney. Filing fees are low ($30–$75), and cases are typically heard within 30–70 days. Judgments are legally enforceable against the contractor's assets, bank accounts, and business receivables.
Small claims works best when: Your damages are $12,500 or less, the dispute is straightforward, you have clear documentation, and the contractor has identifiable assets to collect from.
You cannot have an attorney represent you in small claims court. Complex technical defects that require expert testimony are difficult to prove without professional help. Collecting a judgment can be challenging if the contractor has limited assets.
Hire an attorney when: Your damages exceed $12,500, the contractor has committed fraud, there are complex defects requiring expert testimony, the contractor's insurance company is involved, or the contractor is making counter-claims against you.
Many construction attorneys charge hourly rates ($250–$500/hour). Some take contractor fraud cases on contingency — no fee unless you win. For cases involving fraud or bad faith, attorney fees may be recoverable from the contractor if you win.
For disputes with licensed contractors where your claim is $50,000 or less, CSLB arbitration is often the best path — free, binding, and faster than litigation.