Step-by-Step Guide to Starting a Small Claims Case

AuthorPatricia Pearl/Tim Parker
Pages21-52

Chapter 2


Step-by-Step Guide to Starting a Small Claims Case

2.1 OVERVIEW

Basics

• The court case is started by the claimant:

– filling out a court form (a claim form) – setting out the claim in writing and
– paying a court fee
All either online or by post
• The defendant defends by sending a written defence to the court within 14 days of service or within 28 days if an acknowledgment is filed

• A counterclaim is started by the defendant:

– setting out the counterclaim in writing and – paying a court fee

• Any claim, counterclaim or defence must be verified by a statement of truth

• Most personal injury claims arising from road traffic accidents on or after 31 May 2021 will follow a substantially different procedure (see Chapter 13)

A claim form should not be filled out before sending a letter before action and waiting a reasonable time for a response. Out-of-court settlement must be considered before launching a court action.

Paragraphs 1.3 and 1.4 deal with how to evaluate a case and avoid court proceedings, letters before action and pre-action conduct

22 Small Claims Procedure in the County Court

24 Small Claims Procedure in the County Court

26 Small Claims Procedure in the County Court

Thoughtful preparation of the claim may be the difference between success and disaster – if a claim is poorly drafted or the parties are wrongly described, the matter may become unnecessarily complicated. The essence of a small claims case is its simplicity, and this benefit will be lost if mistakes are made at the beginning.

This chapter covers the main topics to be thought through by the claimant at the outset. Paragraph 2.3 is a checklist for starting a small claims case: the steps needed are explained in order.

The claim form must be served within 4 months of issue, otherwise it expires (CPR 7.5) – although an application can be made to extend the life of the claim form (see paragraph 5.6.5).

Mediation can occur after the issue of proceedings (see Chapter 7), but it makes sense to consider this option beforehand (see paragraph 1.3.3 for more about avoiding court).

2.2 ISSUING CLAIMS

The formal beginning of a claim at court is known as its ‘issue’. Litigants are expected to issue proceedings by post or online. Issuing by attending a local County Court hearing centre in person (over the counter) is now reserved to cases of great urgency, and is not done on a ‘drop in’ basis (see paragraph 1.2.4). The table at paragraph 2.2.4 summarises which methods of issuing a claim are available for which types of case.

2.2.1 By post

Most claims are just for a sum of money; other claims are possible (e.g. a claim for return of goods). If a claim is only for money, then it may be started by post. The claimant should fill out Form N1 and send it to the County Court Money Claims Centre (CCMCC) at PO Box 527, Salford M5 0BY.1The CCMCC office is in Salford. It is not open to the public and does not receive personal callers. Queries are dealt with by a telephone helpline2or by email.3It does not deal with hearings: if one is needed, the case will be transferred elsewhere (see paragraph 4.10).

1CPR PD 7A, para 4A.1.

2Helpline: 0300 123 1372.

3ccmcccustomerenquiries@justice.gov.uk.

Small claims about intellectual property should be made in the Intellectual Property Enterprise Court (IPEC) (see paragraph 5.13).

The process of filling out the claim Form (N1) and sending it to the CCMCC is explained in detail in this chapter. Form N1 can be obtained either from a local County Court or downloaded from the government website.4

2.2.2 Online

There are two different online systems currently in use: Money Claim Online (MCOL) and Online Civil Money Claims (OCMC). Both are described below. They attract slightly lower court fees to start the case (see Appendix 1).

Both systems are only available where the claim is for a specified amount of money. To give an example, a claim for the refund of the price of defective goods is for a specified amount; a claim about the failure to enjoy a holiday which went wrong is a claim for an unspecified amount. See also paragraph 2.3.1.

Money Claim Online

Money Claim Online, or MCOL,5is the older of the two online systems. It is more limited than OCMC, but (until OCMC is further developed) can be used for some types of claim for which OCMC is not available. MCOL permits claimants to write a brief summary of the claim online only: if further details are needed, they must be set out on paper.

When a claim is issued through MCOL, the claim form is posted to the defendant. The defendant may make an initial response online, by email or by post, but that is as far as the online process goes if the claim is defended. If the claim is not defended, the claimant may request judgment and apply for one type of enforcement online.6

The main limits on the use of MCOL are that:

• The claim must be for a specified amount of money.
• The claim must be made under Part 7.7

• The amount claimed must not be more than £100,000.

4www.gov.uk/government/publications/form-n1-claim-form-cpr-part-7.

5www.moneyclaim.gov.uk. The MCOL procedure has its own practice direction: CPR PD 7E.

6CPR PD 7E, para 11.

7Almost all small claims will be Part 7 claims, but see footnote 18 to this chapter.

28 Small Claims Procedure in the County Court

• There cannot be more than one claimant.
• There cannot be more than two defendants.
• None of the parties may be a child or a protected party.8

• The claimant’s address for service must be in the United Kingdom.
• The defendant’s address for service must be in England and Wales.9

MCOL is operated by the County Court Business Centre10in Northampton. You will never have to go there: if a hearing is needed, the case will be sent to a hearing centre (see paragraph 4.10).

More information can be found in the Money Claim Online (MCOL) – User Guide for Claimants, which is available on the MCOL website.

Online Civil Money Claims

Online Civil Money Claims, or OCMC, is the formal name for a much more ambitious scheme.11When fully developed, it will allow parties to take online all the steps that could be needed throughout a claim. Its present limitations, described below, may soon change. OCMC is intended to be user friendly, and as the name itself hardly trips off the tongue the term ‘Online Civil Money Claims’ is not used in its own website.12

Unlike MCOL, OCMC allows claimants to include in their claim form a lengthy statement of case. It guides the claimant through the form completion process step by step in a way which may look familiar to anyone who has taxed their vehicle online, and generates a claim document OCON1, which is in a different format from the traditional N1 claim form reproduced at paragraph 2.1.

When a claim is issued using OCMC, it is posted to the defendant in the usual way, but – if the claimant has given the necessary details – is also sent to the defendant electronically. Defendants can respond online if they wish, and in some OCMC cases claimants have received defences before the posted claim form has even reached the defendant. It is already possible to progress further online than

8For the meaning of ‘protected party’, see note (c) to paragraph 2.3.2.

9See CPR PD 7E, para 4. The restriction to one claimant only is not stated there but appears on the
MCOL website.

10County Court Business Centre, Northampton County Court, St Katharine’s House, 21–27 St
Katherine’s Street, Northampton NN1 2LH.

11The OCMC procedure is governed by CPR PD 51R.

12www.moneyclaims.service.gov.uk. Claimants can also go to www.gov.uk/make-money-claim and defendants to www.gov.uk/respond-money-claim.

MCOL allows, by dealing electronically with the next stages – admissions (see paragraph 3.3) and directions questionnaires (see paragraph 4.7).

The main restrictions on the use of OCMC are set out below. These are similar but not identical to those for MCOL: points of difference are in italics. The OCMC financial limit is presently much lower than for MCOL, but it covers most cases which would normally be allocated to the small claims track:

• The claim must be for a specified amount of money.
• The claim must be made under Part 7.13

• The amount claimed must not be more than £10,000.
• There cannot be more than one claimant.
• There cannot be more than one defendant.
• None of the parties may be a child or a protected party.
• The claimant’s address for service must be in the United Kingdom.
• The defendant’s address for service must be in England and Wales.
The claim must not be for personal injury.14

The claimant will not be getting help from a legal representative, and does not believe that the defendant will be doing so.15

Like MCOL, OCMC is operated by the County Court Business Centre16– which does not conduct hearings, so you will never have to go there. If a hearing is needed, the case will be sent to a hearing centre (see paragraph 5.7).

2.2.3 Over the counter

A local County Court hearing centre will issue a claim only if it relates to something other than money – for example, a claim for an injunction or a declaration:17these cases cannot be issued online or by posting to the CCMCC.

Local County Court hearing centres have limited opening hours and will see personal callers by appointment only. It is not usually necessary to speak to the court staff to issue a claim; the claim form can be posted or taken to the hearing centre, which will either have an ordinary letter box or a ‘drop box’ inside the building.

13Almost all small claims will be Part 7 claims, but see footnote 18 to this chapter.

14See Chapter 13.

15These restrictions (and some others of limited relevance to small claims) are at CPR PD 51R, para 2.1(3).

16County Court Business Centre...

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