For many individuals and businesses attempting to issue a claim for money owed to them, one of the first hurdles isn’t always drafting and completing the papers, but rather figuring out where to send them to. I have found myself referring to Practice Direction 7A (PD 7A) in particular to provide some important clarity regarding the position of a client who has a seemingly straightforward claim for less than £10,000.00. In cases like these, this Practice Direction is not to be overlooked as issuing a claim in the wrong venue can lead to delays, wasted costs and even a breach of the Practice Directions. It is therefore crucial to read and understand the Civil Procedure Rules and Practice Directions relevant to your claim before issuing.
In this post, we will break down:
- How to decide where to issue, based on the value, complexity and type of your claim
- Common misconceptions about issuing locations
- What Practice direction 7A actually says
How to decide where to issue, based on the value, complexity and type of your claim: The first step in determining where your claim should be issued is to assess the value.
- If the value of your claim is less than £10,000.00, you are likely to issue direct to the Civil National Business Centre (CNBC) (formerly known as the County Court Business Centre (CCBC)).
- If your claim is for less than £100,000.00, you can also use Money Claim Online (MCOL).
- For higher value (over £100,000.00) or particularly legally complex claims, the High Court may be appropriate to consider.
Common misconceptions about issuing locations
Many individuals attempting to navigate issuing proceedings without sufficient advice and guidance may be misconceived by common myths. Some you don’t want to fall for are:
- “All high value claims must go to the High Court”
Not true. Whilst PD7A notes that claims over £100,000.00 may be issued in the High Court, that is not a requirement. The High Court is generally reserved for claims involving significant complexity, legally or factually and also public importance; not merely high value.
- “Money Claim Online can be used for any County Court claim”
Incorrect approach again. Practice Direction 7C notes that the service may only be used in certain circumstances. Your claim must only be for under £100,000.00, against up to only two defendants (both must have an address in England or Wales), not involve children, protected parties or finally require any special service procedures.
- “If I issue in the wrong place, the Court will just sort it out”
While transfers are possible, they can cause delays, confusion and potentially wasted costs. You are always advised (and expected) as a litigant in person (or anyone else) to read and understand Civil Procedure Rules and Practice Directions relevant to your claim before issuing.
What Practice Direction 7A actually says:
Practice Direction 7A supplements Part 7 of the Civil Procedure Rules which deals specifically with how a claim is started. PD 7A sets out in what circumstances you may start a Part 7 claim in the County Court.
Paragraph 5.1 of PD 7A clearly states that where a claim:
(a) is started in the County Court under Part 7;
(b) is a claim only for an amount of money (whether specified or unspecified); and
(c) is not subject to special procedures under the CPR or Practice Directions,
then Form N1 must be sent to:
Civil National Business Centre, St Katharine’s House, 21-27 St Katharine’s Street, Northampton.
This means that a large majority of mostly straightforward money claims must be issued via the CNBC, not a local County Court.
Reverting back to the aforementioned example of a client, it is apparent that this type of claim is to be issued in the Civil National Business Centre, and an address is also helpfully provided for filing.
While issuing a claim may seem like a simple administrative task, determining the correct venue remains a crucial step in proceedings and also complying with the Civil Procedure Rules. As Paragraph 5.1 of PD 7A proves, even relatively small claims are bound by clear rules regarding where they must be files.
If in doubt, take time to consult the relevant Civil Procedure Rules and Practice Directions; see our recent blogs on the same here…..
If you need assistance with your claim, our team at White Collar Legal is here to help.
For support on this matter, please email us at: philip@whitecollarlegalandadmin.com or phone 0151 230 8931.
Alternatively, book a free consultation here: https://whitecollarlegalandadmin.com/contact/