Is My Claim Suitable for the Small Claims Court?

Whether or not a claim is suitable for the small claims court may be an important factor when deciding to issue court proceedings. The benefits are obvious: hearings in the small claims court are relatively informal; parties often represent themselves; and, the costs involved are very limited. However, if a claim is issued which proves not to be suitable for the small claims court, litigants could find themselves seriously out of their depth.

The Financial Value of the Claim

The basic rule is that a claim with a financial value of not more than £5000 will be allocated to the small claims track. However, if the defendant makes a counterclaim for an amount that exceeds £5000, this could result in the claim being considered unsuitable for the small claims court.

Exceptions to the Basic Financial Value Rule

There are two types of cases where different financial criteria are applied when assessing suitability for the small claims court:

• Personal injury claims – the financial value of the claim must not exceed £5000 and the amount claimed as damages for personal injuries must not exceed £1000.
• If a tenant is making a claim against their landlord for disrepair of the property the cost of the remedial work must not exceed £1000 and the value of any other claim for damages the tenant is making must not exceed £1000.

The Legal Complexity of the Claim

The small claims court is intended to deal with straightforward claims which do not contain complex legal argument. In discussing allocation, the Civil Procedure Rules (in the Practice Direction to Part 26) state that cases which are suitable for the small claims track include:

• Consumer disputes;
• Disputes about the ownership of goods;
• Accident claims; and,
• Most disputes between tenants and landlords other than those for possession of the property.

This is not an exhaustive list but gives an indication of the type of claims regularly dealt with in the small claims court.

The rules on allocation to the small claims court do not specify a maximum time limit for the hearing of the trial. However, most small claims cases will not be given a hearing of longer than a few hours. If a claim cannot be decided within that time it may be an indication that it is not suitable for the small claims track.

Consent by the Parties

The court can allocate to the small claims track a claim whose financial value exceeds the small claims limit if all the parties consent to it being dealt with as a small claim. This is only likely to happen if the case is straightforward as the judge will also have to be satisfied of the claim’s suitability for the small claims court. Any case allocated in this way is unlikely to be given a hearing of longer than one day.

If a case is allocated to the small claims track by consent the strict and limited rules on costs in small claims cases do not apply. However, there is still a limit on the costs that a losing party may face.

Types of Claims Which Are Not Suitable for the Small Claims Court

• A claim by a tenant of residential property against his landlord for harassment or unlawful eviction.
• Most claims which involve an allegation of dishonesty.
• Claims in relation to unfair dismissal.
• Claims for possession of property (land, buildings etc).
• A claim by a local authority for unpaid council tax – these are dealt with in the magistrates’ court.

Suitability Based on the Desired Outcome

Whether a claim is suitable for the small claims court may depend on the claimant’s desired outcome. If the claimant wants the defendant to pay a debt the court can easily order this, if it is satisfied that the debt is owed. However, if the claimant wants an explanation, an apology or a change in the defendant’s behaviour the court is unlikely to be able to help.