Small Claims Court and Costs

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It is a common misconception that the loser does not have to pay any costs in the small claims track in the County Court. Indeed, the useful article on bank charges contains such a claim. It is NOT strictly true. The small claims track has more limited costs than the other tracks. The loser will almost always pay the issue fee and any other court fees paid by the other party (if the other party is the Claimant or has made a Counterclaim) and also the fixed costs on issuing the claim if the Claimant is legally represented - this is between £50 and £100 depending on the value of the claim. The loser will also almost always pay the reasonable travel and accommodation costs of the other party and their witnesses, and any loss of earnings (capped at £50). If there was an expert, up to £200 for their fees is also usually recoverable by the successful party. These are in the discretion of the Court but are usually awarded. Additionally, the Court also has the discretion to award a successful party all or some of their legal costs if the unsuccessful party has been unreasonable in the opinion of the Judge either in bringing the claim in the first place (eg it had no legal merit whatsoever) or in the way they conducted the claim (eg not complying with court orders, dragging things out, not co-operating with the other side...). Costs in full may also be awarded if a party fails to show up at Court. Lastly, people often get confused about interest. Interest is payable, at up to 8% pa, from the date that the debt was due (or in the case of damages, the date of issue of the claim) until the date of the hearing, although it must be claimed.

Hope this clears a few things up!!

P.S. This is not intended to be legal advice. Please see Civil Procedure Rules 27.14 (and accompanying practice direction) and 45.1.