When pursuing money owed to you via the small claims track of the civil court, it’s important to be aware of the rules and processes governing small claims costs recovery. In this article we’ll outline what you can claim back, in this and related tracks, as well as other factors you should be aware of.
Can I cover my costs?
Small claims court is designed to offer a more streamlined and informal version of the legal process, through which people can recover smaller amounts without the need for costly and complex legal representation. For this reason, small claims costs recovery will be much smaller and more restricted than in larger civil cases.
Costs in the Small Claims Track
You can make a small claim for amounts up to £10,000. Cost recovery in the small claims track deviates from the general rule that legal costs can be recovered from the other party. One of the most significant things to be aware of is that if you hire legal representation, you won’t be able to recover these costs as you might elsewhere. You can however recover the following if your claim is successful:
- Certain fixed costs (usually under £100)
- Court fees
- Costs incurred when attending a hearing
- Witness costs
- Travel expenses
Recovery of costs in small claims court may be increased in certain situations, such as if the other party’s conduct is deemed ‘unreasonable’ or if there is a contractual entitlement for additional costs to be paid. Generally though, if your claim is successful your costs will be limited to court fees and other miscellaneous costs, so plan accordingly.
In the case of non-payment disputes between businesses, it may be possible to receive a small amount of statutory compensation for each late invoice payment.
Because small claims cost recovery is limited, it’s best to keep your costs as low as possible. In most cases, small claims are relatively simple so you can save money by not hiring a solicitor. CaseCraft’s AI-powered platform makes things even simpler, so you can benefit from a straight-forward intuitive process, without unnecessary legal fees.
Costs in the Fast Claims Track
The fast track can be used to make mid-level claims ranging from £10,000 to £25,000. The amount of costs you will be awarded if you win your claim may be a little higher than the costs recovered in the small claims track, but these are still limited by the principal of keeping legal costs down. The exact amount will depend on factors such as the size of the claim.
Costs in the Multi-Track
The multi-track is for very complex claims with values greater than £25,000. In multi-track cases you can recover your legal costs, such as solicitor’s and court fees, from the losing party. If you are successful in your case then you can agree on the costs to be paid with the other side, or you may ask the court to make a ruling if you can show that the costs are necessary and proportionate.
FAQs
Can you recover legal costs in the small claims track?
As a general rule, you will have to pay your own legal costs. Small claims costs recovery is limited to specific fixed costs and court fees. Your travel costs to the court hearing may be recoverable, as are witness expenses. By using CaseCraft’s small claims platform you can keep your costs low, as well as keeping everything you need in one place.
When can parties be ordered to pay full costs?
One party may be ordered to pay the other side’s costs in small claims court if their behaviour is found to be unreasonable, such as if they don’t show up to a hearing or are found to have acted fraudulently.
What is pre-allocation of costs?
When a case is first presented, the claimant may incur a number of costs before it is allocated to a certain track (e.g. small claims or fast-track). These might include things like legal advice or fees for consulting experts. In such cases the court may determine that these ‘pre-allocated’ costs can be recovered, even if the claim is allocated to the small claims track.
