A more thorough explanation:

A small-claims court is a type of state court that handles legal claims that fall below a certain amount, which varies by state but is generally between $2,500 and $25,000. These courts are designed to provide a quick and inexpensive way for people to resolve disputes without hiring a lawyer or going through a lengthy trial.

The rules of evidence in small-claims courts are usually more relaxed than in other courts, and litigants often represent themselves instead of hiring an attorney. This means that the process can be less formal and intimidating for people who are not familiar with the legal system.

Despite their informal nature, judgments made in small-claims court are legally binding and carry the same weight as those made in any other court. If a plaintiff wins their case, they are entitled to a variety of remedies to enforce the judgment, such as wage garnishment or property liens.

• A tenant sues their landlord in small-claims court for failing to return their security deposit. The amount in dispute is $1,500, which is below the state's small-claims court threshold.
• A small business owner sues a customer who has not paid their bill for services rendered. The amount in dispute is $3,000, which is within the state's small-claims court threshold.

These examples illustrate how small-claims court can be used to resolve disputes involving relatively small amounts of money. In both cases, the plaintiffs are seeking to recover money that they believe they are owed, but they are doing so without the need for a lawyer or a lengthy trial. Instead, they are using the streamlined process of small-claims court to seek a resolution to their dispute.