At the amount involved, it would probably be a small claims case. Neither side would even need to hire an attorney, although either could and might want to. They would go pitch it to the judge (you generally don't get a jury unless you specifically ask for one which, at least here, generally irritates the assigned judge greatly) and the judge decides. Assuming no attorney involvement, you are out whatever the court costs are, which you recoup if you win. That is the current solution to smaller cases dollar-wise which would otherwise not be financially feasible.
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