Small Business Sued in Georgia Magistrate Court: How to Respond

A customer just filed a claim against your business in Georgia Magistrate Court. Maybe they're alleging defective repair work, a product that didn't perform, or a service you didn't deliver as promised. The claim can be up to $15,000, and your company has 30 calendar days from the date of service to file a written Answer. The good news: you don't necessarily need to hire a lawyer for this.

Who Can Represent Your Business in Court

Georgia's Magistrate Court rules are more flexible than other courts when it comes to business representation. Under O.C.G.A. § 15-10-43(i) and Uniform Magistrate Court Rule 31, an LLC, corporation, or partnership can be represented by:

• A full-time employee
• An officer or director
• A designated non-lawyer representative

The representative files a Rule 31 Agent Designation form with the court, identifying themselves and their role in the company. This eliminates the requirement to retain an outside attorney for a Magistrate Court case.

The person representing the business should be someone who knows the facts of the dispute — ideally the owner or the employee who handled the transaction. A designated agent who wasn't involved in the underlying events can still appear, but they'll struggle to answer the judge's questions about what happened.

Filing the Answer

Service on a business is usually made through the company's registered agent or a corporate officer at the principal place of business. Check the Sheriff's Entry of Service for the exact date — that starts your 30-day clock.

The Answer is the same as for an individual defendant: admit, deny, or state lack of knowledge for each allegation. File with the county Magistrate Court clerk. No filing fee for a timely Answer.

If the customer's claim has merit for some of the amount but not all of it, you can admit the portion you agree with and deny the rest. Or you can deny everything and present your evidence at the hearing.

When to Counterclaim

If the customer caused your business damages related to the same transaction, file an "Answer and Counterclaim." The $15,000 cap applies separately to each party's claims.

Common business counterclaim situations:

• A customer ordered custom work, approved it, and then refused to pay
• A customer damaged your equipment or property during the service
• A customer breached a service agreement that resulted in your losses

Preparing Your Business's Evidence

For customer disputes, the paper trail is everything:

Contracts, invoices, and receipts — the signed agreement, any change orders, and every invoice you sent. Three physical copies for the hearing.

Work documentation — photos of completed work, time logs, delivery confirmations, or service records. If the customer approved the work at any stage, get that in writing to court.

Communication records — emails, text messages, and notes from phone calls showing what was promised, what was delivered, and when complaints arose.

Financial records — showing payments received and any outstanding balance. Bank records or accounting software printouts work.

If you have employees or subcontractors who witnessed the work or the customer interaction, arrange for them to appear in person. Their written statements can be excluded as hearsay if the other party objects.

After the Hearing

The judge decides the case at the bench trial — no jury in Magistrate Court. If you lose, you can appeal to the State Court or Superior Court within 30 days for a completely new trial (de novo review). If the customer loses and doesn't pay a judgment you won on a counterclaim, you can enforce it through garnishment or a Writ of Fieri Facias.

The Georgia small claims response guide covers the full response process for businesses, including the Agent Designation form, evidence organization, and hearing preparation.

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