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Small Claims Court: Scope, Procedure and Practicalities

Key points

  • Small Claims Court hears monetary claims up to a prescribed limit, which changes periodically.
  • It cannot grant most non-monetary remedies such as injunctions.
  • Procedure is simplified and parties may represent themselves or be represented by a paralegal.
  • Winning is not collecting. Enforcement is a separate process.

What it can hear

Small Claims Court is a branch of the Superior Court of Justice dealing with claims for money or the recovery of possession of personal property, up to a monetary limit set by regulation. That limit has been increased over time and should be confirmed as current.

Typical matters: unpaid invoices, loans between individuals, damage to property, deposits not returned, and disputes over goods and services.

It cannot generally grant injunctions, declarations, or orders requiring specific performance. A claim needing those remedies belongs in the Superior Court regardless of value.

Abandoning the excess

A claimant whose loss exceeds the limit may abandon the excess and sue within it, accepting the lower recovery in exchange for a faster, cheaper process.

What cannot be done is splitting one cause of action into several claims to get around the limit. That is not permitted and will be dealt with by the court.

The calculation is a practical one: whether the difference is worth the additional cost, delay and complexity of the Superior Court.

The procedure

A plaintiff’s claim is issued and served. The defendant files a defence within the prescribed time, and may include a defendant’s claim against the plaintiff or a third party.

A settlement conference follows, before a judge or deputy judge, to explore resolution and narrow issues. A high proportion of matters resolve at or around this stage.

If it does not settle, the matter proceeds to trial. Trials are less formal than in the Superior Court, and the rules of evidence are applied more flexibly, but the case still has to be proved.

Where a defendant does not defend, the plaintiff can move to note them in default and obtain judgment.

Representation and costs

Parties may appear themselves, or be represented by a lawyer or a licensed paralegal. Paralegal representation is common and is one reason the court is comparatively accessible.

Costs awards are restricted. A successful party generally recovers disbursements and a limited amount for representation, well below actual legal fees.

That constraint should shape the decision. Retaining a lawyer for a modest claim may cost more than the recoverable amount, which is a legitimate reason to self-represent or to use a paralegal.

Preparing the case

Small Claims cases are won on documents. The contract or invoices, the correspondence, photographs, receipts, and a clear chronology.

Organise the material, bring copies for the court and the other side, and be able to explain the claim in a few sentences: what was agreed, what went wrong, and what the loss is.

The most common failing is a party who is certain they are right but cannot prove the amount. The loss has to be quantified with evidence, not asserted.

Collecting

This is the part that disappoints people. A judgment is a declaration that money is owed. It does not produce payment.

Enforcement is a separate process and may involve examining the debtor about their assets, garnishing wages or bank accounts, or filing a writ against land.

A judgment against someone with no assets and no income is of little practical value. That is worth assessing before starting rather than after winning, because the cost of the claim is incurred either way.

Common questions

What is the current monetary limit?

It is set by regulation and has been increased over time. Confirm the current figure before deciding where to file.

Only a limited amount. Costs recovery in Small Claims Court is deliberately restricted.

Can a corporation sue in Small Claims Court?

Yes, and it may be represented by an authorised representative in accordance with the rules.

What if the defendant ignores the claim?

They can be noted in default and judgment obtained, though enforcement remains a separate step.

Speak to a lawyer about your situation.
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Limitation periods can end a claim entirely, so tell us any date you have been given.

This decides which court, so a rough figure is enough.

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Lexaltico LLP

Written by the Civil Litigation team at Lexaltico LLP.

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