Expansion of small claims limits – good or bad ?
The Ministry of Justice (MoJ) has launched a consultation about the possibility of increasing the limit for small claims from £5,000.00 to £15,000.00 and all small claims being automatically subject to mediation.
MoJ research indicates that increasing the small claims limit would increase the number of small claims by around 12,000. The current number of small claims is around 93,000 per annum.
There are undoubtedly some advantages of small claims, principally speed and simplicity of process and the lack of risk on costs. However, part of the agenda could also be to soften the opposition to legal aid cuts. Many cases which are valued at less than £15,000.00 still involve complex areas of law and such a move could also encourage defendants to string out claims in the knowledge that they are unlikely to be penalised on costs.
What is crystal clear is that this Government is intent on radical reform of the civil justice legal system.