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§ 25-2618.01.Small Claims Court; jurisdiction; when; transfer limited; appeal.

Article 26: Uniform Arbitration Act · Last amended 1997 · Last verified July 22, 2026

In one sentenceThis section lets a party submit a controversy that fits within Small Claims Court’s dollar limit to Small Claims Court despite an otherwise valid arbitration agreement, bars transferring that case to the regular county court docket, and limits any appeal to the same narrow grounds that would vacate an arbitration award.

Full Text of § 25-2618.01

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(a) Whenever the amount of a controversy subject to the terms of an otherwise valid arbitration agreement is within the jurisdiction of the Small Claims Court under section 25-2802, a party may submit the controversy to the Small Claims Court for ultimate resolution under sections 25-2801 to 25-2807.
(b) A controversy submitted to the Small Claims Court under this section shall not be transferred to the regular docket of the county court under section 25-2805.
(c) In all appeals involving cases submitted under subsection (a) of this section, the judgment shall be affirmed unless:
(i) The judgment was procured by corruption, fraud, or other undue means;
(ii) There was evident partiality or corruption by the judge or misconduct prejudicing the rights of any party;
(iii) The judge exceeded his or her powers;
(iv) The judge refused to postpone the trial upon sufficient cause being shown therefor, refused to hear evidence material to the controversy, or otherwise so conducted the hearing, contrary to the provisions of section 25-2606, as to prejudice substantially the rights of a party;
(v) There was no arbitration agreement and the issue was not adversely determined in proceedings under section 25-2603, and the party did not participate in the Small Claims Court hearing without raising the objection; or
(vi) The judge was subject to disqualification and failed, upon receipt of timely demand, to disqualify himself or herself as required by law.

Source

Laws 1997, LB 151, § 8.

Plain-English Summary

Section 25-2618.01 carves out a small-dollar exception to ordinary arbitration practice. When a controversy otherwise covered by a valid arbitration agreement falls within the jurisdictional amount of the Small Claims Court under section 25-2802, a party may bypass arbitration altogether and submit the controversy to Small Claims Court for resolution under sections 25-2801 to 25-2807. Once a case goes to Small Claims Court this way, it stays there — the statute blocks any transfer of the controversy to the regular docket of the county court under section 25-2805, which otherwise lets a defendant remove a small claims case to the regular docket.

Appeals from a case submitted this way face the same narrow gauntlet that would apply to vacating an arbitration award, adapted to a small-claims judgment. The judgment stands affirmed unless it was procured by corruption, fraud, or other undue means; the judge was evidently partial, corrupt, or engaged in misconduct that prejudiced a party; the judge exceeded his or her powers; the judge unfairly conducted the trial — contrary to section 25-2606 — in a way that substantially prejudiced a party; there was no arbitration agreement, that issue was not already resolved against the challenger under section 25-2603, and the party did not participate in the Small Claims Court hearing without objecting; or the judge was disqualified and, on a timely demand, failed to step aside as the law requires. This mirrors the vacatur standard in section 25-2613 almost point for point, just substituting the judge’s conduct for the arbitrators’.

Frequently Asked Questions

Can I take a small dispute to Small Claims Court even though my contract has an arbitration clause?

Yes, if the controversy falls within the jurisdictional amount of the Small Claims Court under section 25-2802, a party may submit it there for resolution under sections 25-2801 to 25-2807, notwithstanding an otherwise valid arbitration agreement.

Can the other side move my small claims arbitration case to the regular county court docket?

No. Section 25-2618.01(b) specifically bars transferring a controversy submitted this way to the regular docket of the county court under section 25-2805.

What grounds can I raise on appeal from a small claims judgment reached this way?

The same narrow grounds that apply to vacating an arbitration award: corruption or fraud in procuring the judgment, an evidently partial or corrupt judge, a judge who exceeded his or her powers, an unfairly conducted trial, no valid arbitration agreement, or a disqualified judge who failed to step aside.

Can I appeal a small claims judgment just because I disagree with the outcome?

No. The judgment is affirmed unless one of the specific listed grounds is shown — general disagreement with the result is not one of them.

Why would a party choose Small Claims Court over arbitration for an eligible dispute?

Small Claims Court offers a faster, less formal, self-represented-friendly forum for disputes within its dollar limit, and this section preserves that option even when an arbitration agreement would otherwise apply.

Source & verification. Section text and the amendment-history citation are reproduced verbatim from the Nebraska Legislature, Revisor of Statutes, enacted by the Nebraska Legislature. Last verified July 22, 2026. · Official source
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