>Is there a fuck-you option by which a large company can force escalating costs on you through small claims?

It'll vary by state, in general I don't think so? Or at least not if (as apparently was the case here) they don't have anything preventing it in some contractual agreement. In some states a party can appeal to a superior court, but that's not a new trial redo, the judge simply reviews what happened and see if it looks reasonably kosher. If it was they still lose.

The big check on small claims cases is, well, that they're small claims. Nobody could go after a full refund for the cost of a vehicle there for example. If you look at the maximum amounts by state [0], in lots of them even the $10k here would be above the limit (Kentucky is still at $2500 max). My state also was quite low until fairly recently, just because there's no automatic adjustment for inflation and $2500 in 1980 went a lot further than now and state legislature hadn't gotten around to adjusting it up for decades.

And in small claims the winner can generally recover reasonable costs and fees on top of damages (as happened here). And it's 50 different states a company with a national problem would have to get separate attorneys for to deal with. It's one of the few places where the asymmetry is somewhat more towards companies, without any need for the plaintiff to get a lawyer themselves and given that they're almost always going to be physically much closer, it's just a lot more costly for a company to drag it out. They're not going to be setting any useful precedent vs any other small claims, and the max amount is small enough that it's rarely going to be worth it if their claims are weak. Someone angry enough to go to small claims is much more likely to stick to it through sheer bloody mindedness, which is basically all they actually need.

I think normally companies simply just don't create enough of a small claims problem for themselves for any of this to be more than a rounding error. Elon Musk may have somehow managed it though?

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0: https://www.nolo.com/legal-encyclopedia/small-claims-suits-h...

Tesla owner won $10k in court for Tesla's FSD lies. Tesla is still fighting him