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S 2975Civil Procedure

Courts and Civil Procedure - Procedure in Particular Action - Small Claims and Consumer Claims

This bill raises small claims filing fees, increases counterclaim limits to $5,000, and restricts appeals for businesses that default.

Signed into law69 Yea0 Nay6 Not voting
Population
Affected
35
Email Legislator
Introduced Mar 4, 2026Committee Senate Judiciary

Plain-English Summary

This legislation updates the fee structure and rules for small claims court cases in Rhode Island. It increases the filing fee for plaintiffs from $55 to $75, with a portion of that increase specifically allocated to fund court mediators. The bill also raises the limit for counterclaims (claims made by defendants against plaintiffs) from $2,500 to $5,000. Additionally, it establishes that if a business (seller or manufacturer) is sued by a consumer and fails to respond or defend itself, the court's judgment is final, and the business loses the right to appeal.

For younger readers

This new law changes the rules for "small claims court," which is a place where people go to solve arguments about money without needing expensive lawyers. First, it costs a little more money now to start a case there. Second, it allows people to argue over larger amounts of money than before. Third, if a person sues a store for selling them something bad, and the store ignores the problem and doesn't show up to court, the store loses automatically. The store cannot ask for a "do-over" later in a higher court.

Who & Where It Applies

Impacted groups
PlaintiffsDefendantsSmall Business OwnersConsumersCourt Mediators
Impacted communities
All

Constitutional & Fiscal Check

The provision denying a trial de novo in Superior Court to sellers/manufacturers who default could face challenges regarding Due Process. While states have significant leeway in structuring small claims appeals, removing the statutory right to appeal solely based on the defendant's status (seller/manufacturer) and procedural default might be scrutinized. However, because default judgments generally involve a forfeiture of rights, it is likely to survive as a valid procedural penalty.

Estimated cost
None
Estimated revenue
Plaintiffs: $20/case increase

Bill Analysis

Both viewpoints
For Progressives
  • Protects consumers by preventing corporations from ignoring small claims suits and then forcing a new trial in a higher court, ensuring that default judgments against negligent businesses are final.
  • Allocates specific funding for qualified mediators, which promotes alternative dispute resolution and helps parties resolve conflicts amicably without the stress of a trial.
  • Increases the counterclaim limit, allowing more substantial disputes to be resolved in the accessible small claims system rather than forcing defendants into the more expensive Superior Court system.
  • Increases the entry fee for filing a claim, which creates a higher financial barrier for low-income individuals seeking justice through the court system.
  • The strict finality of default judgments could disproportionately harm small, minority-owned, or immigrant-owned businesses that may lack the administrative sophistication to respond immediately to legal notices.
  • While the counterclaim limit is raised, the cap may still be too low to address the true cost of damages in the current economic climate, potentially leaving some disadvantaged parties undercompensated.
For Conservatives
  • Implements a user-fee model by increasing filing costs, ensuring that those who utilize the court system bear a greater share of the financial burden rather than the general taxpayer.
  • Promotes judicial efficiency by preventing businesses that ignore court summonses from clogging up the Superior Court with appeals, thereby respecting the rule of law and court resources.
  • Expands the jurisdiction of small claims courts for counterclaims, reducing the regulatory and bureaucratic burden of moving simple disputes to higher, more expensive courts.
  • Strips businesses of their right to a trial de novo (appeal) in Superior Court if they default, which could be viewed as a violation of due process and an attack on corporate legal rights.
  • Expands government bureaucracy by creating a new "restricted-receipt account" and mandating state-controlled funding for mediators rather than letting the free market handle dispute resolution.
  • Increases government-imposed fees on citizens and businesses attempting to settle disputes, effectively acting as a tax hike on litigation.

Votes

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Full Bill Text

Changes to existing Rhode Island law · 25 additions · 11 deletions

It is enacted by the General Assembly as follows:

SECTION 1. Sections 10-16-4, 10-16-9 and 10-16-14 of the General Laws in Chapter 10- 16 entitled "Small Claims and Consumer Claims" are hereby amended to read as follows: 10-16-4. Filing fee — Waiver of appeal.

(a) The plaintiff shall pay into the court an entry fee of fifty-five dollars ($55.00) seventy- five dollars ($75.00), inclusive of a civil case processing fee and a technology surcharge assessed in accordance with § 8-15-11, and of which twenty dollars ($20.00) shall be placed in a “small claims mediation restricted-receipt account” together with an amount equal to the then-prevailing postal rate, for mailing notices in the case, which shall be deemed the beginning of the action. The “small claims mediation restricted-receipt account” shall be established under the control of the state court director of finance; the chief judge of the district court shall be authorized to pay for the services of qualified mediators and other related expenses from the “small claims mediation restricted-receipt account.” In addition to the entry fee, the court shall apply a technology surcharge in accordance with § 8-15-11.

(b) The plaintiff shall also file with his or her any claim a written waiver of right of appeal.

(c) The defendant shall file with any compulsory counterclaim a written waiver of the right to appeal the counterclaim only. 10-16-9. Filing of defense — Counterclaim. Prior to or upon the date set for answering the defendant shall in writing file in court his or her answer or defense to the plaintiff’s claim and may claim any compulsory counterclaim he or she may have against the plaintiff’s claim, as he or she might plead the claim in an action begun by complaint and summons, and shall file a statement in writing of his or her compulsory counterclaim with the court, and the court shall determine which of the parties is entitled to decision against the other, and in what amount, and enter decision accordingly, but not exceeding the sum of two thousand five hundred dollars ($2,500) five thousand dollars ($5,000). If the defendant’s counterclaim shall exceed the sum of two thousand five hundred dollars ($2,500) five thousand dollars ($5,000), and in the opinion of the court there shall be due the defendant thereon an amount greater than two thousand five hundred dollars ($2,500) five thousand dollars ($5,000), the court shall enter decision against the plaintiff as in case of nonsuit, and for the defendant for his or her costs only, and shall not further adjudicate upon the claim of the defendant, whose right to sue for the claim shall remain in the same manner as before the commencement of the action. The court may continue the hearing from time to time as may be necessary. 10-16-14. Appeals by defendant Appeals.

(a) The defendant, if aggrieved by the decision of the district court in a cause brought under the provisions of this chapter, shall have the same right of appeal, and under the same terms and conditions, as are provided under the practice in ordinary civil actions in district courts. The defendant shall, at the time of claiming the appeal, pay a seventy-five dollar ($75.00) filing fee, inclusive of a civil case processing fee and technology surcharge, if applicable, assessed in accordance with § 8-15-11.

(b) If the plaintiff is filing a claim of appeal on a counterclaim, the plaintiff shall pay an appeal filing fee of seventy-five dollars ($75.00), inclusive of a civil case processing fee and technology surcharge, if applicable, assessed in accordance with § 8-15-11.

(c) Notwithstanding the foregoing, in cases in which the plaintiff is the purchaser of a consumer product seeking to recover damages against the seller and/or manufacturer of that product, if the defendant is defaulted for failure to answer and defend the claim, the judgment of the district court shall be final. In such event, the defendant shall be deemed to have forfeited all rights to appeal and shall not be entitled to a trial de novo in superior court.

SECTION 2. This act shall take effect on January 1, 2027.