Changes in Small Claims rules make it riskier to resolve disputes via the legal system
From 1st April 2013, small claims cases under £10,000 will now be required to fund their own legal costs even if they win.
These new rules mean the winning party is rarely able to recover their legal costs.
This change will effect many people seeking recourse over debts, unpaid invoices or services not delivered as agreed.
The Government decided to increase the general small claims limit, initially to £10,000 with the aim to further increase it to £15,000 in the future after full evaluation of the increase to £10,000. This change came in to effect on 1st April 2013.
The reality of this change is that some people may not be able to afford the cost of court proceedings in the future.
Mediation is increasingly being suggested as the only affordable alternative.
It is a way of solving disagreements without involving the courts in expensive negotiations. An independent third party (the mediator) helps to find options and reach proposals to resolve disputes before they escalate. It is quicker and cheaper than going to court.
Leonard Gray is the only local law firm with a long established Mediation practice.
Our civil and commercial mediations have a 90%+ success rate, most settling in less than one day.
Within the Small Claims, Employment, and Disputes section of this website you can find helpful case examples showing how previous cases have settled quickly and successfully using mediation – many in just one 3-hour session.
And until 30th September we are offering a £100 reduction in our fees.
The author: John Appleby
