NEW Small Claims Court Rules
for Business Claims
The District Court Rules regarding Small Claims have been amended by the Minister for Justice and Equality Law Reform, with effect from the 11th of January 2010. Launching the new procedure, the Justice Minister said “this Goverment is conscious that all businesses, but, small businesses in particular, have been significantly affected by the very difficult economic situation that this country is facing. Businesses, as well as Consumers, can find themselves in a position, where they have a legitimate claim against another Business, or, Vendor in relation to a Contract, in respect to Goods or services Purchased.
The extension of this successful procedure will provide a choice of Legal Routes to pursue a Small Claim, as the current Civil Bill system will also remain available. This will allow a business to choose whichever route, Small Claims, or, Civil Bill procedure, it considers most economic and appropriate to its circumstances.”
The new rules deal with claims which are known as Small Claims, provided that the total amount of the claim does not exceed €2,000. The rules have been expanded to include a Business Small Claim, whereby a Business Purchaser institutes proceedings against a Business Vendor in relation to a Contract, in respect of any Good or Service, but, specifically excludes ;-
a) Any Agreement under the Consumer Credit Act 1995, Or
b) Any claim relating to a Leasing Agreement, Or
c) Any claim for a Debt, or, liquidated sum.
The rules also, allow for a Claim for Damages in Tort, with respect to minor damage to property belonging to the Claimant. However, compensation for Personal Injuries is specifically excluded. Both parties will be responsible for their own Legal Costs, and, Witnesses expenses, with respect to any claim processed through the Small Claims Procedure.
There is no doubt but that the rules will allow businesses to pursue certain claims without the necessity of engaging a Solicitor, and, without the necessity of incurring Legal Costs. However, the choice of Forum is a matter for the Claimant. The Claimant is still entitled to launch Proceedings in the District Court, either in person, or, through a Solicitor.
It remains to be seen what impact this will have in relation to the activity of the Small Claims Court.
However, it is welcome, in so far that, it will enable Businesses to pursue Claims through the Courts which otherwise might not be pursued, because of the incurring of Legal Costs, on their own behalf, and, the risk associated with incurring Legal Costs also, in relation to the Costs of a successful Defendant.
27th January 2010
Patrick Mullins
Partner
Mullins Lynch Byrne Solicitors.
