The Small Claims Court would appear to be a victim of its own success. Established in 1996 as an arm of the District Court, it has helped many consumers to resolve small disputes without going to the expense of hiring a solicitor. It costs €25 to bring a claim but only actions involving goods, services, damage to property or non-return of key money are admissible.
However, the use of the court is declining according to the Courts Service with only 2,081 cases lodged with it last year, a fall of 55 per cent on the previous year. Amongst the possible explanations for the decline advanced by the Courts Service is the intriguing notion that a greater awareness among goods and service providers of the small claims process – and the likelihood that they will lose if they end up in the court – has brought about a more conciliatory attitude when it comes to dealing with consumer complaints.
There is no doubt that the court does seem to look kindly on plaintiffs. Last year 70 per cent of the 478 small claims cases which went ahead with a hearing were successful, according to the Courts Service. Many others were settled, usually following mediation led by court officials.
The Competition and Consumer Protection Commission (CCPC) has put forward another somewhat more prosaic explanation for the decline in use of the court. The €2,000 limit on cases that can be brought before the court “is out of step with many of the most basic and unavoidable expenses faced by consumers today,” according to the watchdog.
RM Block
The CCPC – which refers a significant number of complaints to the court each year – points out that many of them are about issues such as car purchases or home improvements. These fall within its remit and are well suited to its procedures but are generally excluded from its jurisdiction by virtue of the €2,000 limit.
The limit was last raised – from €1,000 – in 2006. Cumulative inflation since then has been close to 30 per cent, meaning a review of the limit is warranted. The court’s success in settling disputes suggests that the adjustment should be even greater than this.
