You may be thinking about making a claim against someone, or a company, for money that you are owed. There are a number of considerations that you should have before issuing a claim and we would always recommend seeking legal advice specific to your claim.
However, we have put together a list of top tips that you ought to consider if issuing a claim:
1. Which ‘track’ might your claim fall into?
The court, generally, has three tracks: small claims track, fast track and multi-track. The small claims track is usually for claims under £10,000; the fast track is usually for more complex claims and claims or between £10,000 and £25,000; the multi-track is reserved for the most complicated cases of the highest value, being claims over £25,000.
The track is important because the track your claim is allocated to will impact the stages of the claim (such as whether detailed disclosure is necessary) and whether costs are recoverable.
2. Interest
Can you claim interest on the amount you are seeking? The usual position would be to check any contract or document that the claim arises from and establish whether there is an entitlement to interest which can be claimed. If there is no contractual entitlement then it may be that you can claim interest under statute such as s.69 County Courts Act 1984 (for County Court), s.35A Supreme Court Act 1981 (for High Court) or – in a business to business debt – The Late Payment of Commercial Debts Act (Interest) Act 1988 (which also provides for compensation depending on the value of the debt). This list is not exhaustive but demonstrates that interest can be sought; we would always recommend taking advice on your interest entitlement.
3. Understand your claim
This may sound easy but it is important to establish that you have a claim that is legally viable and that is backed up by evidence. In issuing a claim you will be expected to particularise your claim so understanding the facts and legal issues is essential. The person or organisation you are claiming against is entitled to understand the claim that they face so it is really important to have your house in order before issuing a claim. Full details should be provided of the claim with reference to dates, documents and the law. You do not have to provide evidence with your claim but it can be useful to do so.
Fully understanding and setting out your claim will hopefully avoid applications to strike out and/or summary judgment.
4. Check the fee
The value of your claim will determine the fee that the court requires to issue your claim. The fees can be viewed on the HMCTS website. If your claim proceeds to a final hearing then there is also a final hearing fee to be paid which is worth noting at the outset and planning for.
5. The Pre-Action Protocol
The courts should be seen as a last resort in resolving a dispute. The courts will expect the parties to a dispute to engage with one another to try and resolve a dispute. A letter before action sent in accordance with the Pre-action Protocol (which can be found on the Justice website) is designed to place the other parties to a dispute on notice of a claim, set out the issues and identify any suitable alternative dispute resolution schemes such as mediation that the parties might want to consider. Only if the dispute cannot be resolved following a letter before action being sent should you consider issuing a claim at court.
For more information regarding legal disputes, please contact our specialist lawyers today at lawyers@bennettoakley.co.uk
