Can I sue Fidelity in small claims court for my investment losses?

Full question:

I retired from the University of California (01/01/09) and a lump sum pay off ($71000) was sent to Fidelity Investments to go in my 401k. 01/16/09.I had contacted a Fidelity Retirement Counselor in November, 2008, and told her I did not want my new money to go in the any of the default mutual funds that the account had which I had chosen as investments months before.I made clear my desire that the new money was to go in a treasury money market to protect it against market fluctuation.A form was sent to me which I did not send back in until early January, 09.Fidelity maintains that The form had irregularities in the information and before anyone could contact me, the distribution was sent from the University to my default mutual funds that were still open. Finding this out, I transfered the new money to a treasury money market to save it from mutual fund losses.My losses are about $5000 from the phone transfer I made to save the new money.Yes, I should have sent the form in earlier, but I also believe that Fidelity should have contacted me when irregularities were found. I do not have the time line of this now. I requested a mailed copy of the form that was sent be mailed to me. Can I sue in Small Claims court or should I use a lawyer?

• Category: Small Claims
• Date: 04/07/2025
• State: California

Answer:

You can sue in small claims court in California for money damages up to $7,500. However, you cannot file more than two small claims actions exceeding $2,500 in a calendar year. It’s important to check the contracts involved to see if there’s a clause requiring disputes to be resolved in a specific forum.

According to California law, the small claims court has jurisdiction for recovery of money if the amount does not exceed $5,000 (Cal. Civ. Proc. § 116.220). If your claim is for $5,000 or less, you can proceed in small claims court without a lawyer. If you seek more than that, or if you have filed two claims over $2,500 in the same year, you may need to consider other legal options.

Before filing, ensure you have all necessary documentation, including a statement of your losses and any correspondence with Fidelity. You may also want to request a copy of the form you submitted to Fidelity.