Summary: When acting on behalf of a plaintiff, one of the primary considerations for a solicitor is the appropriate forum in which to pursue the claim. Whilst this is a relatively straightforward exercise with regards liquidated debts (a debt where there is an exact amount owing on foot of a contract), it requires a degree of skill and experience when placing values on claims that include damages or contributory factors.
The importance of choosing the right forum is clear, choosing a lower court is cheaper and more expedient but they are limited in the amount they can award, conversely, bringing an over inflated claim to a higher court will take longer and will result in the plaintiff being penalised on costs. At present in the district court the maximum amount a judge can award is set at €6,350. If you bring a claim worth €10,000 to the district court there is no possibility of recovering any more than €6,350 and you will have lost out on €3,650 due to the wrong choice of forum. However the flipside is, should you bring a claim in the Circuit Court (which has a monetary limit of €38,100) and are only awarded €5,000, you will be penalised for the extra costs incurred on both sides by virtue of the fact the District Court would have been the appropriate forum.
The current monetary caps (DC €6,350, CC €38,100) were set in 1991 and have remained stagnated despite the huge changes that have occurred in Irish Society. In 2002 legislation was passed that provided for an increase in these amounts, however the minister has as of yet failed to enact this legislation. This all looks set to change following the recent report of the Legal Costs Implementation Advisory Group, which has recommended that the increases by implemented immediately for all actions except personal injury. The limits are set to rise to €20,000 for the District Court and €100,000 for the Circuit Court.
The expected result of these increases is the reduction of legal costs. The ability to bring a claim up to the value of €20,000 in the District Court will result in less cost for all involved and a more expedient result. The increase in the Circuit Court will also serve to dramatically reduce the costs of litigating larger claims as well as providing a far more accessible forum to those living outside the capital. Prior to this all claims above €38,100 were brought to the High Court, and outside of Personal Injury and Fatal Claims, all other claims originating in the High Court are heard in Dublin.
The advisory group has recommended that personal injury claims are not affected by this increase until such a time as the overall effect of the introduction of PIAB can be ascertained.
Here at Malcomson Law we have a specialist litigation team who are able to draw on a wealth of experience to assist in preparing your claim and ensuring that we achieve the best result possible for you. Please contact us on 01 8744422 or by filling out an online inquiry form and a client care executive will be in contact with you.
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