"Small-claims court isn't very helpful for cases with complicated facts or relationships," says Peter Lovenheim, co-author of Mediate, Don't Litigate (Nolo, $17, www.amazon.com). "And most disputes are complicated." So before threatening to drag your neighbor or dry cleaner into small-claims court, consider the following reasons not to.

"You want to end a problem, not a relationship," Lovenheim points out. Think twice before suing someone you see daily or may have to do business with again.

There is a limit to the amount you can sue for (usually between $3,000 and $5,000), and if you lose the case, you may have to pay any lawyers' fees (yours and theirs), if applicable.

Court cases are complex. You could lose your case on a technicality, the other party could countersue over the same dispute, and in most small-claims cases the plaintiff cannot appeal the decision.

The judge is concerned only with the facts of the dispute, not your history with the other party. And it's a win-or-lose situation, with the judge deciding the outcome.

Even if the court decides in your favor, you may not get paid. You — not the court — are responsible for collecting the settlement.