August 22, 2013

Small claims limit extended

In 2009, Lord Jackson conducted a review of costs in litigation claims, and the Government implemented almost all of Lord Jackson’s recommendations.  Most of the reforms were implemented in April 2013 and are aimed at reducing the costs of litigation.

From the point of view of a small to medium sized business, the most significant reform is the increase in the limit for “small claims”.  The bracket for small claims (not including personal injury claims) has been extended to claims with a value of up to £10,000.  A claim being placed in the small claims track affects a party’s ability to recover its legal costs in the event of a successful claim; the successful party is generally only able to recover ‘fixed costs’.  Fixed costs do not amount to a lot and will invariably be a lot less than the actual legal costs incurred.

For this reason, a claimant with a small claim will always need to consider the costs implications of issuing i.e. how much are they likely to recover relative to the value of the claim.  This will involve an analysis of the merits of the claim, and the likely costs of pursuing it. 

Solicitors at Holmes & Hills are experienced in litigation and successful dispute resolution. Your litigation at Holmes & Hills will provide you with competitive and realistic costs estimate, and offer fixed fee services where appropriate.

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