The small claims court provides a straightforward and cost-effective way for individuals and businesses in England to resolve disputes involving relatively small amounts of money – it applies to any claim which has a value of £10,000 or less.

The aim is that this is a more informal and streamlined process for smaller value claims. Understanding the process can help you to navigate the system with confidence, as often you will not require a legal representative for this type of claim. In this guide, we will break down the key steps involved in pursuing or defending a small claims action at court.

 Eligibility

The small claims track for court claims is designed for cases involving claims of £10,000 or less. This could span a wide range of different types of disputes such as unpaid invoices, faulty goods or services, property damage, or contract breaches. Claims which exceed a value of £10,000 will be dealt with by the court differently.

 Before starting a claim

Before filing a claim, you must send a formal letter before action to the other party, to notify them of your potential claim, provide an opportunity to resolve the claim and notify them of your intention to issue court proceedings if the dispute cannot be resolved informally. This might involved negotiations or offering mediation as a way to settle the dispute without going to court.

Issuing a claim

To start a claim you will need to complete a specific court form, which is usually a Form N1 for most claims. You can obtain this form from the government’s official website. Alternatively, you can start and run your claim online using court portals such as the Money Claims Online service. On the form you should provide clear details about the nature of your claim and what you are seeking.

 Court fee

When you lodge your claim with the court you will be required to pay a court fee. The amount depends on the value of your claim. It is important to note that if you win your case, you may be able to recover this fee from the losing party.

 Serving the claim

Once your claim is issued, it must be served on the defendant. This can be done by post, in person or in some instances by email. The court will provide guidance on acceptable methods. The defendant then has a limited time to respond.

Defendant’s response

The defendant can respond to the claim by admitting, partially admitting or denying the allegations. Failure to respond within the specified time may result in default judgment in favour of the claimant – this is when the Court automatically rules in favour of the claimant.

 Prepare for the hearing

If the case is not resolved through mediation or negotiation, both parties will be notified by the court of the date and location of the hearing. Both parties should prepare ay evidence, documents or witness statements necessary to support their case.

 The hearing

Small claims court hearings are relatively informal. The judge will listen to both sides, ask questions and make a decision based on the evidence presented. You should be concise and focussed in presenting your case.

Judgment

The Judge will make an order called a judgment, outlining the decision and any awarded money or other remedy. If the losing party fails to comply there are various options to enforce the court judgment such as obtaining a warrant to seize property. This requires a further court application.

 Costs

The general rule applied in the small claims court is that if you have incurred any legal costs in dealing with the claim, only a very small fixed amount can be recovered from the losing party in addition to the court fee paid. This means that it can often not be viable for parties to have legal representation, as the legal costs may run higher than the value of the claim.

Finally

Navigating the small claims court need not be daunting. By understanding the process and being well-prepared, you can confidently pursue or defend your case, seeking a fair resolution to your dispute. Remember, legal advice is always beneficial, so consider consulting a solicitor for specific guidance tailored to your situation.

 To discuss any small claims matters contact Sarah Naylor at sarah.naylor@switalskis.com or call 01302 320621.