Sued by a Contractor in Washington Small Claims Court

A contractor served you with a Notice of Small Claim for work they say you didn't pay for. Before you panic — or write a check — understand what this claim actually involves and what your options are.

The Entity Limit Matters

If the contractor filed as a business entity (LLC, corporation, or partnership), their claim is capped at $5,000 under RCW 12.40.010, even if they say you owe more. If the contractor filed as an individual sole proprietor, the limit is $10,000. Check the caption on the Notice of Small Claim — is the claimant "John Smith d/b/a Smith Painting" or "Smith Painting LLC"? The entity designation determines the cap.

A contractor who files as a business entity claiming more than $5,000 has exceeded the small claims department's jurisdiction. You can raise this at the hearing, and the judge should dismiss or reduce the claim to the jurisdictional limit.

Common Defenses in Contractor Disputes

The work was never finished. If the contractor abandoned the project partway through or left critical items incomplete, you don't owe the full contract price. Bring the original contract or written estimate showing the agreed scope, photos of the current state of the work, and a list of what wasn't completed. If you hired another contractor to finish the job, bring that invoice too — it demonstrates both the deficiency and the actual cost of completion.

The work was defective. Faulty workmanship is the most common category for contractor-vs-homeowner claims. Document the defects with dated photos, get a written assessment from an independent contractor or inspector, and compare the work against building codes or industry standards where relevant. If you already paid for repairs, bring those receipts.

You paid more than the contractor admits. This happens with cash payments and informal arrangements. Bank withdrawal records, canceled checks, Venmo/Zelle transaction history, and text messages confirming receipt of payment all help reconstruct what you've actually paid.

The contract terms were different from what the contractor claims. A written contract controls. If the contract says $4,000 for a bathroom remodel and the contractor is suing for $6,500 in "extras," they need to show that you authorized the additional work in writing. Verbal change orders are harder to prove on both sides.

No written contract exists. Washington's statute of limitations for oral contracts is 3 years (versus 6 years for written contracts). If the work was completed more than 3 years ago and there's no written agreement, the claim may be time-barred.

Should You Counterclaim?

If the contractor's work caused damage to your property or cost you money beyond what you refused to pay, you may have a counterclaim under CRLJ 13. File it with the court clerk, pay the filing fee ($35–$50 depending on county), and serve the contractor at least 10 calendar days before the hearing under RCW 12.40.040.

A counterclaim is especially worth considering when repair costs exceed the original claim amount — the judge hears both claims together and can offset the awards.

Preparing for the Hearing

Bring three copies of everything:

• The original contract, estimate, or written agreement
• All change orders or written scope modifications
• Payment records (bank statements, check images, electronic transfer receipts)
• Photos of the work — both what was done and what was left unfinished or defective
• An independent repair estimate or inspection report
• Text messages and emails with the contractor about the project
• A chronological timeline of the project from start to dispute

Organize your evidence to match the story you'll tell the judge. The judge wants to hear: what was the agreement, what happened, and why the plaintiff's claim is wrong or inflated.

The Washington Small Claims Response Guide includes an evidence log and a response decision tree that helps you map your specific contractor dispute to the right defense strategy.

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