You may have made enquiries to seek legal advice from a solicitor for a dispute and been advised that it wouldn’t be cost effective for you to instruct a solicitor to act on your behalf.
If this is the case, you will likely have been informed that your dispute is a matter for the Small Claims Court. This blog aims to provide you with a brief overview of what this means and how you can go about making a claim.
- Where can I find the Small Claims Court?
You may be surprised to know that there isn’t actually such a thing as the Small Claims Court. Instead, it is merely a procedure that deals with small claims called the small claims track. These claims tend to be simple and of lower value, which should take less than a day to resolve, and they are typically heard in the County Court.
- What claims are dealt with by the small claims track?
You can use the small claims process for most types of claims provided that the value is less than £10,000 in England and Wales. This includes claims for unpaid invoices, breaches of contract, sale of goods and services, parking tickets and building disputes.
There are a couple of exceptions to this general rule. You can only use the small claims track for personal injury claims and housing disrepair claims up to a value of £1,000 in England and Wales.
Even if your claim is for less than the value limit, it may not be dealt with by the small claims track if it is of a complex nature or the hearing will take longer than a day.
- Should I try and settle the dispute before initiating the small claims process?
Yes, going to court should always be the last resort. You should always try and resolve your dispute outside of court first as it will likely be cheaper and quicker to do so. In addition, the court may penalise you if you are unable to demonstrate that you have tried to resolve your dispute outside of court.
Notifying the other party of your claim in writing and ongoing civil communication can go a long way in resolving a dispute. However, if you are unable to come to an agreement with the other party then you could try and negotiate a settlement. If you are unable to do so, you could instruct a mediator to assist with this process if required.
In addition, you should ensure that you have complied with all of the steps set out in the Practice Direction on Pre-Action Conduct before you bring a claim to court. You can find these steps here.
- Why is it not cost effective for me to instruct a solicitor for a small claim?
It wouldn’t be proportionate for you to instruct a solicitor due to the low value of the claims and the fact that even if you win, you cannot claim your legal fees from the other party. The reason for this is that the small claims track has been designed for parties to represent themselves.
- How do I make a claim?
You can make a claim online through the HM Courts and Tribunals Service here. Alternatively, you can make a claim by post by downloading and completing the paper claim form N1.
You will need to have the full name and address of the other party. If the other party is a company, you will need to use the company’s registered office address. You will also be required to set out the reason for your claim and the value of the claim.
- How much will it cost for me to make a claim?
You will need to pay a court fee when you first make your claim and this is based on the value of your claim. The applicable court fees as at the date of this blog are as follows:
| Claim Value | Court Fee |
| Up to £300 | £35 |
| £300.01 to £500 | £50 |
| £500.01 to £1,000 | £70 |
| £1,000.01 to £1,500 | £80 |
| £1,500.01 to £3,000 | £115 |
| £3,000.01 to £5,000 | £205 |
| £5,000.01 to £10,000 | £455 |
You will also have to pay a £40 court allocation fee if your claim is over £1,500.
Finally, you will be required to pay a hearing fee if and when your case gets to court. The applicable hearing fees as at the date of this blog are as follows:
| Claim Value | Hearing Fee |
| Up to £300 | £27 |
| £300.01 to £500 | £59 |
| £500.01 to £1,000 | £85 |
| £1,000.01 to £1,500 | £123 |
| £1,500.01 to £3,000 | £181 |
| £3,000+ | £346 |
You may be entitled to receive a reduction in the court fees if you have little or no savings and you either receive certain benefits or have a low income. Further information about this can be found here.
- I have submitted my claim, what happens next?
You must wait for a response from the defendant, who will have 14 days from the date on the Claim form to respond. If the Defendant does not respond, a judgment may be entered in your favour.
If the defendant admits the claim, they will need to respond with the relevant admission form and make payment to you for the amount you are claiming.
The defendant may admit part of the claim, and they will need to complete the relevant admission, defence and counterclaim forms. The defendant will also be required to make payment to you for the amount they think they owe you.
If the defendant disputes the whole claim or wishes to make a counterclaim against you they will be required to complete the relevant defence and counterclaim forms.
The defendant may also file an Acknowledgement of Service to ask for another 14 days to respond. However, this is only available if they are defending the claim or only paying what they think they owe you.
The court will then send out the notice of proposed allocation once a defence has been received. A directions questionnaire will also be circulated for both parties to complete.
Finally, the defendant will likely be offered mediation when they respond to the claim, which is free and quicker than going to court. Therefore, you should consider mediation, as both parties will have to agree to it for it to take place. The mediator will remain neutral and explore options to negotiate and agree a settlement between you.
- What happens if I win?
If you win your case you will be awarded damages and the court fees you have incurred. In addition, you will be able to claim for certain expenses, including £90 a day for loss of earnings to attend a hearing plus reasonable travel expenses for yourself and any of your necessary witnesses. You may also be able to claim £750 towards an expert’s costs, if the judge gave you permission to obtain expert evidence.
- What happens if I lose?
If you lose your case you will not be awarded damages and you will not be able to recover the court fees you have incurred. You could be liable to pay for any expenses incurred by the other party, including £90 a day for loss of earnings to attend a hearing plus reasonable travel expenses for the other party and any of their necessary witnesses. In addition, you may be ordered to cover £750 towards an expert’s costs if the judge gave the other party permission to obtain expert evidence.
However, if the other party has instructed a solicitor at any point throughout the process, you should not be required to cover their legal fees.
- Do I have the right to appeal the judgment if I lose?
You do have the right to appeal if you are not happy with the judge’s decision. However, there are limited circumstances in which this applies, namely that the court has made a mistake in law.
It will be necessary to obtain the judge’s permission to appeal and you must request this when you lose at trial. If the judge refuses to grant you permission, you will be required to complete form N164 and file this with the court within 21 days of the date of judgment.
If you are looking to bring a claim against an individual or a company using the Small Claims Court and you would like some initial advice on your specific circumstances, do get in touch as we may be able to offer you a fixed fee appointment for you to discuss matters with one of our dispute resolution solicitors. You can do so by calling 0845 543 5700 or contact us.