When issuing a claim in civil proceedings the claim will be allocated to a track based on the value of the claim. There are four tracks to which a civil claim can be allocated. These four tracks are as follows:
- Small-claims track (value of less than £10,000);
- Fast track (value of between £10,000 and £25,000);
- Intermediate track (Value between £25,000 and £100,000); and
- Multi-track (value over £100,000 or in complex cases £25,000 or more).
The small claims track is a track that specifically deals with claims that have a financial value of no more than £10,000. This track is designed to allow parties to act in person (otherwise known as litigants in person), without legal representation, and make the dispute resolution process quick and cheap.
Costs
When issuing a small claim there is an issue fee payable. The fee depends on the amount being claimed however, at present the fee ranges from £35 to £455. While the costs of pursuing a small claim are relatively low compared to other tracks, the costs incurred in pursuing the claim are not normally recoverable from an opponent upon success. The Court will generally award the successful party modest fixed costs incurred in issuing the claim and for other Court fees.
Procedure
The case management aspect of the claim is kept simple, with the Courts often giving standard directions for the parties to follow without the need for a case management conference. The directions given will set out a timetable running up to a fixed trial date set by the Court. These directions may include a direction for parties to disclose documents, obtain expert evidence, and file and serve witness statements.
The Courts do offer a free mediation service, which parties are able to agree to, although this is not appropriate for all matters, in some cases, it can be a cheaper and quicker way to settle a dispute.
In the event, that the claim does not settle prior to the trial date set by the Court, claims allocated to this track are generally dealt with by a district judge or circuit judge. These judges have wide discretion in the small claims track and can grant the same type of financial remedies as those allocated to the fast track, intermediate track, or multi-track.
Trials for small claims are usually less formal than those allocated to the other tracks. The judge will hear both parties and any witnesses followed by making a judgement.
Limitation
Claims that fall within the small claims track are still subject to limitation dates. Limitation dates vary depending on the type of claim. For example, where there has been a breach of contract the claim must be issued within 6 years of breach. This is in accordance with the Limitation Act 1980. Once a limitation date has passed, a Defendant will have an absolute defence to the claim.
How can Nelsons help
Faye Henderson is a Trainee Solicitor at Nelsons.
For further information on navigating your small claim, advise you on the options available, and assist you in settling your dispute to bring it to an end, please contact a member of our Dispute Resolution team in Derby, Leicester, or Nottingham on 0800 024 1976 or via our online enquiry form.
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