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Odds are she is acting as her own council then. Problem is it is real court and not small claims. Then this amount also makes it dificult because an attorney will cost you a few thousand. This would probablly be more than you would have to pay in arbitration.
Generally to keep the courts less filled up they will require arbitration. This may be a good alternative. Offer a small settlement that would be less than your attornies fees to handle the case through verdict.
On the other side, you could bury her in paperwork responses that have to be filled out to set rules. Each filing costs money for both sides unless they qualify for free legal assistance.
Or do not really fret it, ride through it and do what is required. Worst case is you loose and then she gets to spend the next 7 years or so trying to collect on it.
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