Review and Evidence Standards in Small Claims Actions Explained

The Third Department explained the appellate review and damages-evidence standards for small claims actions as follows:

Appellate review of small claims is limited to determining whether “substantial justice has not been done between the parties according to the rules and principles of substantive law” (UCCA 1807; …); only a clearly erroneous determination will be overturned ….  Here, a credibility determination was required, and City Court chose to credit plaintiff’s testimony regarding the events at defendant’s premises over the testimony of two employees of defendant. We agree with County Court that the determination that plaintiff’s ring was converted was not clearly erroneous, and that substantial justice was  done.

Further, as to the issue of damages, we note that although small claims matters are not bound by the rules of evidence, a determination may not be based solely on hearsay (see UCCA 1804…).  Here,   plaintiff described the size and condition of the ring in her testimony, and also submitted a “lost ring appraisal” performed by a jeweler, stating a value of $8,600.  Although this appraisal, based solely upon plaintiff’s description of the ring, was hearsay …, plaintiff’s trial testimony presented some measure of competent evidence of the amount of damages, as she described the quality and condition of the ring… .  Rowe v Silver & Gold Expressions, 515526, 3rd Dept, 6-6-13