Shanghai's courts will implement a new set of rules and procedures on January 1 to govern civil cases involving monetary claims of 15,000 yuan ($2,406) or less, the Shanghai Higher People's Court announced at a press conference Tuesday.

The procedures create a streamlined system for small claims cases in the courts. In the past, Shanghai's courts did not differentiate between small claims cases and other civil lawsuits.

The change will improve the court system's efficiency and help lower legal expenses for small claims litigants, said Sheng Yongqiang, vice president of the Shanghai Higher People's Court.

Sheng estimated that small claims cases accounted for roughly 10 percent of all of the civil cases the local courts handled last year. He listed seven categories of cases that qualified as small claims under the court's new rules. They included the repayment of loans, unpaid salaries, unpaid child or senior support, unpaid utility bills and disputes over damaged vehicles.

The higher court limited small claims cases to those involving disputes of no more than 15,000 yuan, which is roughly 30 percent of the average annual salary in the city. The court plans to adjust the yuan figure in the first half of each year as residents' salaries go up.

The cap only applies to civil cases in which the plaintiff is seeking monetary compensation, Sheng said.

The higher court also created a rule that stipulates that the court's verdict in a small claims case can't be appealed. "This can greatly shorten the time spent on litigation," Sheng said. "If both parties cooperate, these cases can be settled in two or three days - no longer than a month. Currently, such cases can go on as long as six months."

Four district courts in Shanghai have tried about 10,000 small claims cases under these rules and procedures since last May as part of a pilot program.

The courts will not charge fees if both the plaintiff and the defendant in a small claims case agree to settle the dispute out of court. The courts will charge a 10 yuan fee if both parties ask for a verdict.