Being taken to small claims court

You might have to go to a small claims court if you are in debt to someone else. Read on to learn about how it works, and get answers to common questions like how to take someone to the small claims court and what happens if you lose.

Does someone owe you money but won’t pay up? You could always take them to a small claims court to get your cash back. But it’s best to go into the process with your eyes open! Read on to find out what you can expect.

What is a small claims court?

A small claims court is an offshoot of the County Court, and a place to settle a financial dispute if someone isn’t coughing up your cash. Claims can be made to the tune of £10,000, or less, for many reasons, including:

• Bad workmanship.
• Damage to your property.
• Road traffic accidents.
• Goods not supplied.
• Faulty goods.
• Someone just owes you money.

And claims can be made for £1,000 or less, when:

• You are making a personal injury claim.
• You are claiming compensation from your landlord or want to force them to carry out necessary repair work to the property.

Ultimately, the small claims court is a good place to settle minor financial grievances without drawing upon expensive legal teams to front your case.

In Scotland, small claims are handled via the Sheriff’s Court, for sums up to £3,000. In Northern Ireland, the limit is £5,000. The following applies only to England and Wales.

Can you access a small claims court online?

You can start court proceedings online on the gov.uk website, or use the same link for advice on how to claim by post. Otherwise, you can check out your local phone directory, under Courts, or contact your local Citizens’ Advice Bureau.

To start the process your claim must be against no more than two defendants and both you and the defendants must have an address in England or Wales where documents can be delivered. You’ll also need an email address and a debit or credit card.

You can find a list of small claims court costs in the UK here. You may have to pay multiple fees, for example a hearing fee and an application fee.

How to start a case at the small claims court

First of all, there’s no point in taking someone to court if you haven’t already tried negotiating with them. If you don’t try to settle first, the court could penalise you. But if negotiations fail, here’s what to do.

If you’re 18 or over, then drop in to your local County Court and fill out a claim form. Alternatively, you can register your details at moneyclaim.gov.uk and the site will generate a unique customer identification and password.

You’ll need to state:

• The name and address of the person/company you’re claiming against.
• The amount you’re claiming and the reason why.
• Whether interest is applicable (charged at 8% per annum).
• If it’s a personal injury claim, you’ll need an official medical report.

If you fill in the claim at the court they’ll stamp it, give you a copy and send a copy to your opponent. They will be expected to fill in the details requested and return the form to the court. If you use the online process the defendant will receive court papers in the post, but they’ll be able to enter their response online.

Your opponent must usually send their defence to the court within 14 days of receiving your claim (or 28 days if they sent you an acknowledgement of service).

After that, if a hearing is necessary, the court will inform you of the date.

Often the whole case can be sorted out via correspondence, or the defendant may just cough up at the first whiff of legal letter heading. And if it does involve a real hearing, it won’t last more than a couple of hours, or a day at the max.

What happens if I win?

Your opponent will be bound to pay the compensation agreed by the judge, plus fixed costs (court fees, solicitor’s charges, travel expenses and loss of earnings.) However, if they’ve gone bust, or can’t pay, then you may not get your money.

If they don’t pay up then you might be able to send the bailiffs to their home to recover your money. Find out more about bailiffs here.

What happens if you lose in a small claims court?

Well, you won’t get your small claims court fees back unfortunately, and you could be liable to pay the fees of the person or business on the other end of the claim.

The bottom line is this – the small claims court can be an effective means of reclaiming your money (and your pride), but you have to be realistic about your chances of succeeding before you start puffing out your chest and vowing to strike down your opponent with great vengeance and furious anger.

Bear in mind that you can also use Alternative Dispute Resolution to resolve your dispute without the need for court action.

Thanks to CAB for their help with the article.

Got a rip-roaring UK small claims court anecdote? You could always chat about this subject on our discussion boards.