Ever felt like using the Small
Claims Court?
Ever fancy appearing on the Judge
Rinder TV Show?
The show is a mirror of a real-life court system we have in the UK
known as the Small Claims Court. This typically deals with claims with a value of
less than £10,000 (£3000 in Scotland). The court is also known as ‘small claims
track’ and is sometimes referred to as ‘arbitration’. The claims tend to involve
someone (the Claimant) asking the court to make an order compelling the other
person (the Defendant) to pay them a sum of money.
Here are the most common types of
claim which exist in the Small Claims Court.
We happen to believe that these
situations can be avoided or reduced if you have proper paperwork in place.
This is a typical debt case where someone owes someone else an unpaid debt. In order to be successful, the Claimant needs to prove the debt exists, its amount, when payment was due, and that the person owing the debt has not paid it or has only paid some of it. The best way to avoid this is to evidence the transaction by a contract, promissory note and of course invoice!
The debt might of course arise from a private loan someone has made. It might seem a little embarrassing to require that the loan is put in writing (especially if to family or friends) but a surprising number of private loans end up in default. If the loan is in writing, it provides clarity as to the amount involved and terms of repayment - including interest. Have a look at our private loan agreement (one of our more popular templates ideal for laying down an enforceable understanding for when you lend money to others).
This is where
one or more terms of a contract (whether written or verbally agreed) has been
broken by the Defendant. To be successful in receiving monies, the Claimant has
to prove the breach and that he or she has suffered monetary loss. Verbal
contracts are valid, but it is inevitably better to have transactions recorded
in writing, as this evidences what should happen and pricing etc. We have a variety
of contract templates on our website.
If the supply
of any goods or services is basically not up to scratch or they were provided
with a warranty or guarantee which has not been honoured by the seller
there may be a claim under this category. Again, the Claimant will need to show
and prove loss or damage as a result of the breach. An example of this may be
the sale of a motor vehicle which broke down unexpectedly whilst under warranty,
or if second hand, simply did not live up to what was being described as being
sold. We have a nice selection of terms and conditions of supplier contracts (such as our "Sale of Goods and Services Terms - Business to Business").
Landlords often
resort to the Small Claims Court to collect unpaid rent. This is often after
the tenant has vacated the premises. On the flip side, tenants can also use the
Small Claims Court to retrieve deposits paid to Landlords which have not been
returned either in full or in part. Obviously, each party has to prove that the
monies are owed, especially the tenant who would need to show that there was no
reason for the landlord to keep back the deposit. Tenancies
should preferably in writing rather than verbal form as this protects both
parties. Rent Deposit Deeds can also be used.
This is a type
of breach of contract dispute where for example new windows have
been incorrectly fitted causing not only annoyance but added costs if the Claimant
needs to spend money hiring someone else to make them good.
This is where
the negligent (careless) or intentional behaviour of the Defendant has caused
you personal injury. This could extend to being bitten by someone’s dog, a
minor car shunt, or even an assault.
This is
similar to personal Injury but where the damage is to your property instead of
to your person.
Have you ever
suffered injury from a good you have bought? If the product is defective e.g. something
had very sharp edges for no reason, or faulty wiring, it may be possible to recover
damages under the legal doctrine of strict liability, which holds the
manufacturer responsible for the damages you suffered, without your having to
prove negligence.
The Small Claims Court exists for
a reason and opens up justice cheaply and fairly quickly as lawyers are not always
used.
However, it is possible to avoid
the necessity of pursuing Small Claims Court claims by being prepared and organised
in your dealings. Protect yourselves as best as you can by getting appropriate contracts
signed before you buy or sell a product or service. Things may of
course still go wrong but at least you will have written evidence as to what
should have happened.
John Davies
16th September 2020
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