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Civil Justice<br />

The small claims jurisdiction has been rapidly increased <strong>and</strong><br />

now st<strong>and</strong>s at £5,000. 31 Far more cases are h<strong>and</strong>led in the small<br />

claims system than in ordinary hearings in the county court, 32<br />

but if one asks the question who uses the small claims court, the<br />

answer is still, above all, small business to recover debts.<br />

Pr<strong>of</strong>essor John Baldwin's verdict, on the basis <strong>of</strong> extensive<br />

research in this country, the United States <strong>and</strong> in Canada, was:<br />

"The evidence in this <strong>and</strong> other studies shows . . . that, while such<br />

mechanisms provide a means whereby access to justice might be<br />

extended, in practice they continue to be used by very limited sectors<br />

<strong>of</strong> the population, particularly pr<strong>of</strong>essional people or those representing<br />

business interests. And any hopes that the small claims<br />

context might provide an avenue through which the poor might find<br />

redress for their grievances seem to have no empirical support<br />

whatever." 33<br />

In fact Baldwin's view is that recent increases in the jurisdiction<br />

have not even had the effect <strong>of</strong> bringing in new cases.<br />

Rather it seems to have resulted merely in transferring cases<br />

that would previously have been dealt with in the ordinary<br />

procedure to the small claims arena. 34 In itself that may be<br />

worthwhile but it is not the purpose <strong>of</strong> having small claims<br />

courts.<br />

If the user friendly <strong>and</strong> relatively inexpensive small claims<br />

courts will not bring in the punters, there is obviously little hope<br />

that simplifying the procedure or reducing the costs in the<br />

ordinary courts will have that effect.<br />

Is the answer therefore to try to encourage people to use some<br />

form <strong>of</strong> Alternative Dispute Resolution method? There is no<br />

doubt that there is today a powerful movement <strong>of</strong> informed<br />

opinion both in this country <strong>and</strong> in many other countries that<br />

31 The £75 limit was raised in 1975 to £200. In 1979 it went up to £500 <strong>and</strong> in<br />

1991 to £1,000. Lord Woolf's Interim report proposed that it be increased to<br />

£3,000 save for personal injury cases <strong>and</strong> that was implemented in 1996. When<br />

the Woolf reforms were introduced in April 1999, the jurisdiction was raised<br />

to £5,000, save for personal injury <strong>and</strong> housing cases involving claims <strong>of</strong> over<br />

£1,000.<br />

32 In 1998 there were some 14,000 ordinary proceedings compared with some<br />

98,500 small claims cases. {Judicial Statistics, Cm. 4371 (1998), Table 4.7, p. 40.)<br />

33 J. Baldwin, Small Claims in the County Courts in Engl<strong>and</strong> <strong>and</strong> Wales: The Bargain<br />

Basement <strong>of</strong> Civil Justice (Clarendon, Oxford, 1997), p. 133.<br />

34 See J. Baldwin, "Increasing the small claims limit", New Law Journal, (February<br />

27, 1998), pp. 274, 276.<br />

35

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