Unpaid Business Debt in Florida: Does Small Claims Fit Your Case?

By Kristina E. Wilson, KEW Legal, Coral Gables office

If you’re looking at the small claims limit for business debt in Florida, start with the amount you are pursuing. Florida sorts unpaid business debts by dollar amount, and that amount usually decides where a case begins. Small claims handles smaller disputes, county court hears actions at law up to the statutory limit, exclusive of interest, costs, and attorney fees, except matters within circuit courts’ exclusive jurisdiction, and circuit court takes larger claims. This guide walks business owners and investors in Miami-Dade and Broward through each tier.

Which Florida Court Hears an Unpaid Business Debt?

The amount you are asking for, not the total you are owed, usually sets the starting court. Interest, court costs and attorney fees are left out of that count. Florida has three tiers to know:

• Small claims for smaller disputes, handled under the Florida Small Claims Rules.
• County civil, the county court’s side of the docket, for claims up to $50,000.
• Circuit court for larger claims, and for actions at law that county courts cannot hear.

Each tier has its own rules, paperwork and pace. Picking the right one early saves time and keeps the claim on track.

The Small Claims Track for Smaller Balances

Small claims is the simplest route for a smaller unpaid invoice. It runs under the Florida Small Claims Rules, which set their own procedure. Before you file, check those rules for the current dollar limit that applies to your claim. Don’t assume it matches the $50,000 county court figure, because those are two separate tracks.

Mediation works differently here too. Florida’s court-ordered mediation statute says a court must refer most civil money suits to mediation on request. Under Fla. Stat. § 44.102, a court must, upon request of one party, refer a filed civil action for monetary damages to mediation, provided the requesting party is willing and able to pay the costs of the mediation or the costs can be equitably divided between the parties, unless, among the other listed exceptions, the action is filed for the purpose of collecting a debt or is governed by the Florida Small Claims Rules. A collection suit, then, is not sent to mediation automatically.

Small claims rises or falls on paperwork. Gather the signed contract, every invoice, proof of delivery or completed work, the payment history, and any written demand you sent. A missing invoice or an unsigned agreement can leave a claim thin, even when the debt is real.

Suing for More Than the Small Claims Track Allows

Claims above the small claims track go to county civil for amounts up to $50,000. In county courts, an action at law is heard where the amount in controversy, exclusive of interest, costs, and attorney fees, does not exceed $50,000, for cases filed on or after January 1, 2023. That amount excludes interest, costs and attorney fees.

Larger claims go to circuit court. Under Fla. Stat. § 26.012, circuit courts have exclusive original jurisdiction over all actions at law not cognizable by the county courts.

Here is how the count works. Suppose you are owed $42,000 in principal, plus $6,000 in interest and a claim for attorney fees. The county limit is measured on the $42,000, so the case stays in county civil. The total you’re demanding is not the number that counts.

Formality rises with each step up. County and circuit cases usually involve more written filings, motions and scheduling steps before trial than a small claims case does.

How the Court Choice Affects Cost and Timing

The court you choose shapes the steps, the paperwork and the calendar. Filing fees and service costs differ by court and by county. Confirm the current figures with the clerk in the county where you plan to file.

Where you file matters as much as which court you choose. Fla. Stat. § 47.011 provides that actions shall be brought only in the county where the defendant resides, where the cause of action accrued, or where the property in litigation is located, and it states that the section does not apply to actions against nonresidents. This section does not apply to actions against nonresidents. It also allows the county where the claim arose or where the property is located. Filing in the wrong county can cost you time.

Timing depends on the facts, the court’s calendar, and whether the other side responds. Limitations periods also run against you. Florida’s limitations statutes set deadlines that vary by type of claim. Under § 95.031, a cause of action generally accrues when its last element occurs. Check the deadline early.

Is Small Claims Worth It for a Smaller Balance?

Whether a smaller invoice justifies a lawsuit depends on the facts. Weigh the balance against filing costs, the time you will spend, how strong your paperwork is, and whether you still work with this customer or vendor.

A judgment is not the same as payment. Under Fla. Stat. § 55.10, a certified copy of a judgment recorded in a county becomes a lien on real property there. Under Fla. Stat. § 55.10, a judgment, order, or decree becomes a lien on real property in a county when a certified copy of it is recorded in that county’s official records or judgment lien record, provided the judgment, order, or decree contains the address of the person who holds the lien or a separate affidavit stating that address is recorded at the same time. Under Fla. Stat. § 55.10, a judgment, order, or decree becomes a lien on real property in a county when a certified copy is recorded in that county’s official records or judgment lien record, provided the judgment, order, or decree contains the lienholder’s address or a separate affidavit stating that address is recorded at the same time.

Interest matters too. Under Fla. Stat. § 55.03, any judgment for money damages must bear, on its face, the rate of interest payable on the judgment, and that stated rate accrues until the judgment is paid, as adjusted under subsection (3).

Plead the claim that governs the invoice. Under Williams v. Johnson, where an express contract covers the same subject matter, claims arising from that relationship generally cannot be pursued as unjust enrichment. For the contract side of these disputes, see our business contract and vendor dispute page.

Frequently Asked Questions

Bring Your Unpaid Invoice to a Consultation

If a customer, vendor, former partner or tenant still owes your business money, you may have a claim worth reviewing. Start by gathering the contract, every invoice, the payment history and any demand letters you sent. Our team can go through those documents with you and talk about which court fits the amount you’re pursuing.

Call 305-990-2300 or send a message through our contact page to schedule your free, confidential initial consultation, with no obligation to continue. Our office is in Coral Gables. No outcome is promised, but we can give you a clear starting point.