Significant changes to civil courts
by David Carter on 09 February 2012
The Ministry of Justice has just announced that it is extending its simple Small Claims mediation service which should avoid the need for a formal court hearing. Taking part is voluntary and it can be done face-to-face of by telephone.
In the trial, 73% of the 10,000 cases were resolved and 98% of those surveyed were satisfied or very satisfied with the service. If the case isn’t resolved through mediation, the case will go to a hearing before a judge.
1.5 million disputes are handled by the courts each year, and the MoJ expects that up to 80,000 more cases will be diverted to mediation.
Further proposals
The Government’s response to its consultation Solving Disputes in the County Courts also includes plans to:
- Increase the limit of ‘small claims’ from £5,000 to £10,000 with a view to increasing it again to £15,000 subject to evaluation. All small claims will be automatically referred to the Small Claims Mediation Service, though mediation will not be mandatory. Cases proceeding to court will not need comprehensive legal preparation
- A single county court will be introduced, so all claims can be handled centrally and then be allocated across courts according to demand
- Some administrative form work will move from judges to administrators
- Restrictions will be lifted on High Court judges sitting in County Courts while waiting to take cases in the High Court
- Improve the enforcement of court decisions so that more creditors receive what they are owed: For example where a court-ordered payment instalment plan is already in place, creditors will also be able to apply for an order to secure an unsecured debt. This would stop certain instances where a debtor might benefit from the sale of a property without paying off the debt
- Debtors will no longer be at risk of losing their home over consumer credit debts of less than £1,000
- Only non-personal injury claims above £100,000 will be heard in the High (previously £25,000)
- The value of property above which equity cases need to be referred up to the High Court will be raised from £30,000 to £350,000, reflecting the rise in house prices since the level was last set in 1981
- Extending a web-based scheme which controls legal costs for the majority of personal injury cases: The costs are pre-set in a way which encourages early settlement. Following evaluation of its current use in road accident cases worth compensation of up to £10,000, the scheme will be extended to road accident cases worth up to £25,000 and also to employer and public liability personal injury cases
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