Small claims - the costs issue

On 1 April 2013 there was a change to the threshold for claims in the small claims track.  Until this date a small claim was deemed to be one where the value of the claim was £5,000 or less; from 1 April this has increased to £10,000.

The implication is that the cost recoverability rules, which are presently applied to cases up to £5,000, will extend to cases worth up to £10,000. These rules are that legal costs and disbursements are not recoverable from the other side, even if you are successful.

The result is that the benefit of issuing a claim will need to be considered very carefully; unrecoverable costs could quickly exceed the value of a claim.

In the light of the new threshold it will become even more important to consider alternative means of settling disputes at an early stage. 

The contents of this article are intended for general information purposes only and shall not be deemed to be, or constitute legal advice. We cannot accept responsibility for any loss as a result of acts or omissions taken in respect of this article.