If you are: a person (this includes sole-proprietors) you may claim up to $12,500; if you are a Corporation, limited liability company or partnership, you may claim up to $6,250.
Drafting a Settlement Agreement Checklist (Federal) ✔ Retain relevant documents. ✔ Decide whether (and when) to make offer. ✔ Evaluate the reasons for settling. ✔ Assess motivating factors to settle. ✔ Confirm client's ability to settle. ✔ List all covered parties. ✔ List all legal issues to be settled.
At the outset of settlement negotiations, list all individuals and entities—both for the plaintiff and the defendant—that the agreement will cover. ✔ List all legal issues to be settled. List all claims your adversary may legally release via settlement. Verify the agreement covers these claims.
Generally, you can only sue for up to $12,500 in small claims court (or up to $6,250 if you're a business). You can ask a lawyer for advice before you go to court, but you can't have one with you in court.
If you are: a person (this includes sole-proprietors) you may claim up to $12,500; if you are a Corporation, limited liability company or partnership, you may claim up to $6,250.
Conclusion: Going to small claims court may be worth it for $500, but it will determine how you weigh your costs versus benefits. At a minimum, it is worth it to send a demand letter.
What Should Be Included in a Settlement Agreement? Identifying information for all involved parties. A description of the issue you're seeking to settle. An offer of resolutions that both parties agree to. Proof of valid consideration from both parties without coercion or duress. Legal purpose.