Why keeping a small claim limit to £1000 matters

In costs, General Litigation, News by AAH

This week the Minister of Justice announced further changes to personal injury funding and your lawyers fees. It has agreed to keep the Small claim limit of £1000 for injury claim. This means that claims valued at 1000 -25000 for injury will be allocated to fast track.

If as advocated by insurance companies it was increased to £5000 injury claim valued upto 5k would have been to allocated to Small claim track

County Court In civil courts claims are allocated to three tracks depending on their monetary value.

They are –

1. Small claim track – 0 to £1000

2.Fast track – £1000 to £25,000

3. Multi track – above £25,000

Small claims are designed to encourage public to take them through the court themselves. One of the ways of encouraging public to do this is to prevent successful party to recover their lawyers fees. In Small claims court if you win your claim and have a lawyer you will not recover your lawyers fees from your loosing opponent. You would have to pay him/her out of your own pocket. That’s why we at Hafezis recommend you to conduct your own claim in the small claims court. Its not in your interests to hire us.

In Fast track and Multi track claims successful party recover their lawyers fees from the looser. Thus if the Small claim limit for injury claims was increased to 5,000, a majority of  injury claims would have been allocated to Small claim track, leaving you to pay your lawyers fees even where you have won,  from the damages recovered.

Whilst this has gone unnoticed in the eyes of the general public this is of great significant to those injured at work, on the road and in public places. As majority of claims are settled for less than  £5000, it would have left many injured people to act on their own in the Small claim court against insurers who would have been represented by big insurence law firms.

You can feel reassured that provided your injury claim is valued at more than a £1000, hiring a lawyer will not be financially disadvantageous to you. If you are injured any where in England and need to find out how this affects you, please call us. We are a family firm, at your back and call, and will be happy to point you in right direction with no obligation.

Abdul hafezi  Tel. 0207 377 0600