What are Small Claims Court Costs If You Lose in the UK?

Small claims are generally for claims where the amount in dispute is less than £10,000. The starting point in England and Wales is that if you issue a claim which is allocated to the small claims court track and you lose, you will not be liable for your opponent’s legal costs other than court fees. 

However, the court always has discretion regarding costs and there is no certainty costs will not be ordered against you. The court looks at conduct, and if there is unreasonable behaviour a judge can order that you pay your opponents costs, even in the small claims court.

In many cases, the outcome of a claim is not black and white. A good way to mitigate risk if this becomes apparent is to make your opponent an offer on a without prejudice (or ‘off the record’) basis. If the final judgment goes against you this will illustrate you tried to avoid litigation.

Some people enter into a ‘no win, no fee’ agreement with their solicitor, so if they lose the case, they are not liable for their own legal costs. These agreements are not possible in small claims; where the amount in dispute is less than £10,000. Other types of funding can be possible such as working on a fixed fee for fixed work basis, or a % of the amount recovered basis.