Starting a small claims court claim

Starting a small claim in England and Wales is relatively straightforward and is designed so that individuals can handle it without a solicitor. Here is a clear explanation of the process.

Check you have a valid claim:

Before anything else, make sure you have a clear basis for saying the money is owed. This might be an unpaid invoice, a breach of contract, damage to property, faulty goods or services, or a loan that has not been repaid. Gather together any evidence you have, such as contracts, emails, text messages, invoices, receipts, photos, or witness statements.

Try to resolve it without court:

The court expects you to have made a genuine attempt to settle the dispute before issuing a claim. Write a formal letter before action to the person or business. This letter should set out clearly what you are owed, why, the amount, and a reasonable deadline for payment, usually 14 days. If they are a business, send it to their registered address. Keep a copy. If they do not pay or respond, or if negotiations break down, you can proceed to issue the claim.

Which court and which track:

Small claims in England and Wales are dealt with in the County Court. Claims worth up to 10,000 pounds are normally allocated to the small claims track. Personal injury claims up to 1,000 pounds and housing disrepair claims up to 1,000 pounds also fall within this track. The small claims track is informal, costs are limited, and you usually will not need a solicitor.

How to issue the claim:

1. Go to the Money Claims Online service at moneyclaims.service.gov.uk. This is the simplest and cheapest way to start a claim for a fixed sum of money. You can also use the paper form N1, available from the gov.uk website or from your local County Court, but the online route is quicker and slightly cheaper.

2. You will need to provide your name and address, the defendant's name and address, a brief description of the claim and why the money is owed, the amount you are claiming, and the court fee.

Court fees:

The fee depends on the amount you are claiming. For online claims it is slightly lower than paper claims. As a rough guide, for a claim of up to 300 pounds the fee is 35 pounds online, and it rises on a sliding scale. For a claim of 10,000 pounds the fee is 455 pounds online. You can check the current fees on the gov.uk website. You can add the court fee to the amount you are claiming, and if you win the court will normally order the defendant to pay it back to you.

What happens after you issue the claim:

The court will serve the claim on the defendant, who then has 14 days to respond. They can pay, admit the claim, file a defence, or file a counterclaim. If they do not respond within 14 days you can apply for judgment in default, which means you win automatically. If they file a defence the court will allocate the case to the small claims track and set a hearing date, or in some cases offer mediation first.

Mediation:

Since 22 May 2024, there is an important change. For most small claims with a value of up to 10,000 pounds, the court will automatically refer the case to the Small Claims Mediation Service. Attendance at mediation is now compulsory for most small claims unless the court directs otherwise. The mediation is conducted by telephone and is free. If settlement is reached at mediation it is binding. If not, the case proceeds to a hearing.

The hearing:

Small claims hearings are informal. They are usually held in a private room rather than a courtroom. The judge will ask questions and look at your evidence. You can bring a friend or family member for support, and in most cases a solicitor's costs cannot be recovered even if you win, so there is no disadvantage in representing yourself.

Costs:

On the small claims track, the court will not normally order the losing party to pay the winner's solicitor's fees. You can recover the court fee, any reasonable travel expenses for attending the hearing, and a limited amount for loss of earnings. This makes the small claims track low risk from a costs perspective.

Practical tips:

1. Keep all your evidence organised and make copies of everything.
2. Be clear and concise in your claim form about what happened and why the money is owed.
3. Respond to any court directions or deadlines promptly, because failing to do so can result in your claim being struck out.
4. If the defendant offers a reasonable settlement before the hearing, consider accepting it, since even a strong case carries some risk at a hearing.
5. If you win and the defendant does not pay, you may need to take enforcement action, such as a warrant of control, an attachment of earnings order, or a third party debt order. These involve additional fees and steps.

Key things that can affect the outcome:

Whether you can identify the correct legal name and address of the defendant is critical. For individuals this is straightforward. For businesses, check whether they are a sole trader, a partnership, or a limited company, and use the correct legal name. For limited companies you can find the registered office on Companies House.

The limitation period for most contract and debt claims is six years from the date the money became due. If it is approaching six years, act promptly.

If any of the facts of your situation are more complex, for example if there is a dispute about whether a contract existed, or if the other side has a potential counterclaim, it is worth thinking carefully about the strength of your evidence before you issue.