What is the worst that can happen in small claims court

chuckles1066

Hubert_Dalrymple wrote:

Having a CCJ registered against any company is a very serious matter. For smaller companies it will usually make it extremely difficult to obtain credit. A CCJ against a director can cause huge and very grave problems as well. I have found that many judges will be extremely lenient with company directors and companies and coerce the Claimant into agreeing a consent order rather than entering Judgment against them.

Agreed but assuming we're talking about having just won in Court, then a CCJ is still several steps away.

You've just won and the Judgement is that the other party is given, say, 14 days to pay up. After 14 days, nothing.

You then have to decide whether its worth your while enforcing Judgement. More expense and hassle. In fact, if the other party didn't bother turning up and the Hearing was held in their absence, they can ask to have the Judgement set aside.

So you're back to square one! Trust me, this sort of thing goes on all the time :mad:

Most individuals, when faced with the might of corporate solicitors, will give up long before it gets as far as getting a CCJ issued. Particularly, as Martin points out, if threatened with a counter-claim.

Hubert_Dalrymple

If you win and you get Judgment in your favour, that IS a CCJ. It will be registered as such after 28 days unless it is staisfied within the time given for payment. If you have to enforce then the CCJ is registered.

The bank can always apply to have the Judgment set aside but there are certain hurdles they will need to overcome. A Judgment, even a default Judgment is a thing of value and is not to be overturned lightly. To set aside a Judgment in default, the bank will have to show that they have a defence which has a realistic prospect of success and that they acted promptly. (CPR 13.3)

If they filed a defence but then failed to turn up for the hearing the hurdles are even greater. They will have to show that they acted promptly when they found out about the Judgment AND that they had a good reason for not attending the trial AND that they have a realistic prospect of successfully defending the Claim (CPR 39.3). If any of those three conditions is not satisfied then the application to set aside Judgment must fail. In my submission, it will be very difficult for a large organisation with a considerable organisation and infrastructure behind it to be able to show that they had a good reason for not attending the trial.

To reiterate, once Judgment is entered in your favour, there is a CCJ. As soon as it has to be enforced, it will be registered.

BettyB_3

Clare11 wrote:

Did I read correctly if someone was receiving Working Tax credit that to file a claim at a small claims court would be free?
Or does this just apply to other benefits?

Don't forget to check whether or not you are exempt from fees http://www.hmcourts-service.gov.uk/i.../exemption.htm If this is the case then you will need to file in person at your local court rather than online. You will find the court staff extremely helpful though.

Although it is most common for claims over £5000 to be allocated to the fast track, at least one claimant that I know has successfully applied for allocation to the small claims court for a sum which was substantially over £5000.

ThisNameIsTaken_2

Can someone please tell me if I am able to make my claim for £7.7k from Natwest via Moneyclaim or whether the amount is too high.
I'm confused. I went through all the info on the site yesterday and filled in all the forms, including the amount of the claim but at no point did it say I was claiming for too much.
I'm yet to complete it as have to pay £250 to file claim and don't have that until Friday.

nickmack

ThisNameIsTaken wrote:

Can someone please tell me if I am able to make my claim for £7.7k from Natwest via Moneyclaim or whether the amount is too high.
I'm confused. I went through all the info on the site yesterday and filled in all the forms, including the amount of the claim but at no point did it say I was claiming for too much.
I'm yet to complete it as have to pay £250 to file claim and don't have that until Friday.

You can claim, but it will probably be Fast Tracked instead of in the Small Claims. Look on the CAG site in the forum for the implications of this.

Dellean

Is anyone out there whose bank filed a defence or contested their claim? Please help. I am beginning to frail.

Many thanks

Red_Panda_2

yep, Nationwide have filed a defence today - according to MCOL which says:

Defence

You are unable to take any further action online on this claim.

The Defendant disputes the whole amount you have claimed. Your claim cannot proceed online and will be transferred to the appropriate court for continuation. You will receive confirmation to where the claim has been transferred to shortly.


I was prepared for this so am not to worried, I believe this is the way Nationwide are going now so have done my homework and am waiting for the papers to come so I can continue onwards and up as they say!!!

When ever you take the big boys on you have to be prepared for it to go all the way - most of the time they do not get this far but there is always a small chance of it happening.

cazziebo

I think NWide have done this a few times - filed a defence - but still paid up the day before.

(According to posters on the CAG site)

Red_Panda_2

Yep thats why I was expecting it - have been following a few of them over on CAG. Just think its going to take a while now, oh well ho hum, I have lots of time spare :rotfl:

nickmack

Don't let it worry you, many institutions are filing a defence and then paying up.

It's part of delaying tactics and convincing themselves that if they file a defence they are not in the wrong.