Ever since the general election of June 2017 the implementation of the suggested reform to the small claims track limit has been in the pipeline. It is planned that, as of April 2020, the small claims track limit will be increased to £5,000 in Road Traffic Accident Cases (RTAs). But what does this mean for the lay-person and not the lawyer?
The small claims track, in RTAs, is currently reserved for cases where the claim for personal injuries suffered does not exceeding the value of £1.000. Typically, these will be low-value whiplash injuries suffered in Road Traffic Accidents. In these cases, where an individual decides to instruct a lawyer, they will not be able able to recoup some of their costs from the Defendant. As such, individuals are more likley to act as Litigants in Person, in order to save on costs, and will decide to handle the case themselves. This causes little issue where the claim is fairly straightforward.
Fastforward to April 2020, where the small claims track limit will been increased to £5.000. Consider a case that is less straightforward where the individual has suffered injuries that are more severe and longlasting and, therefore, worth more money. Where the individual would have previously been allocated to fast-track and would have been able to recoup some of their costs from the defendant, their case is now allocated to small claims track where no such luxury exists.
The significance of this increase should not be underestimated. It is likely that this will lead to a significant increase in the number of Litigants in Person. These Litigants in Person will then have to deal with matters of procedure, for example obtaining medical reports, as well having to grasp complex areas of law including causation, valuation of damages and contributory negligence to mention just a few.