In the English court system, there are different tracks for various claim values, outlined in the civil procedure rule, also known as the court rules.
The small claims track generally deals with claims up to a value of £10,000. They’re principally addressed in Part 27 of the court rules, but other parts of the CPR can also come into play when dealing with small claims, as it is generally not cost-effective to instruct the lawyer to deduct the claim with a value of £10,000 or less.
The small claims track is designed for people to run their claims without the need for lawyers.
Even though a low-value claim may not seem worth pursuing, it is important to consider that small claims can still involve the recovery of thousands of pounds that would otherwise be lost. If your business were to pursue multiple small claims, the total amount recovered could be substantial, significantly boosting your business’s profitability.
It’s important to remember that the costs for small claims court are usually fixed. This means that the court cannot usually order the other party to pay all your legal costs unless there are exceptional circumstances. As a result, even if you win your case, you may not be able to recover all or most of your lawyer’s fees. This is a strong reason for considering representing yourself in small claims court. Nonetheless, lawyers can still be involved in small claims cases, either by managing the case or by providing high-level advice and addressing specific legal questions behind the scenes.
Preparation
If you need to file a small claim or respond to one, you will have to clearly outline your claim or defence. This situation typically arises when one party owes money to another but has not paid, despite being obligated to do so. However, the small claims track is also applicable to cases involving low-value personal injury claims and certain landlord/tenant disputes.
As a claimant, your first step will be to explain why you believe the other party owes you money and has not paid. If you are a defendant, you will need to clarify why the claimant is mistaken in asserting that you owe the money.
Defendants should also consider if they have a claim of their own against the claimant, which would be a counterclaim. Pull together all of the key documents that you need to make the claim or to defend the claim, such as contracts, terms and conditions, invoices, emails between the parties, and any other documents you’d want to rely on to prove or support your claim or defence. Make sure you’ve read all the key documents, and that you have not missed anything that may alter your position or make it untenable. If the claim is based on a contract or terms and conditions, check to see if there is a clause governing how a dispute should be dealt with, as you may be required to take certain steps before being able to claim, such as ‘the disputes are first arbitrated by a barrister.’
Please consider the other party’s position and whether they have a valid point. It’s not productive to pursue a claim that is unlikely to succeed, nor is it beneficial to defend a claim if you are liable. If the claim is of small value and the potential costs are limited, you might be more willing to take the risk.
If you are making a claim, consider whether the defendant would be able to pay if they were ordered to do so by the court. Check if the defendant has assets such as cash, property, vehicles, etc. If the defendant is a company, you can access their most recent accounts for free on the Companies House website. If you believe that the defendant would not be able to pay, think carefully about whether to proceed with the claim. Threatening to enforce a court order, such as by making the defendant bankrupt (if they are an individual) or winding up their company, can be a powerful incentive for them to pay. It’s important to have a strong basis for your claim or defence. The court will only grant your order if you provide the necessary evidence.
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