"Small Claims Court's significance: safeguarding its pertinence"
Decline in Small Claims Court Usage: A Look at the Facts
The Small Claims Court, an arm of the District Court established in 1996, has seen a significant decline in usage in recent years. According to the Courts Service, only 2,081 cases were lodged last year, a fall of 55% from the previous year's 4,627 cases [1][3]. This decline has raised concerns among the courts service and the Competition and Consumer Protection Commission (CCPC).
One potential reason for this decline could be a lack of awareness or understanding of the court's relevance and processes. The CCPC, which refers a significant number of complaints to the Small Claims Court each year, suggests that this might deter people from using it [1].
Another factor could be the barriers related to procedure or accessibility. Navigating legal forms, providing evidence, or understanding claim limits can be challenging for ordinary members of the public, especially if they require advice or legal assistance [4].
The CCPC and the Courts Service also suggest that alternative dispute resolution methods or other consumer protection avenues could be preferred, reducing the reliance on the Small Claims Court.
The Small Claims Court's jurisdiction is typically limited to actions involving goods, services, damage to property, or non-return of key money. However, the €2,000 limit on cases has not been adjusted since 2006, despite inflation. Cumulative inflation since 2006 has been close to 30%. As a result, many complaints referred by the CCPC, such as those involving car purchases or home improvements, fall outside the court's jurisdiction [1].
The court's success in settling disputes suggests that the adjustment of the €2,000 limit should be substantial. Last year, 70% of the Small Claims cases that went ahead with a hearing were successful, according to the Courts Service [1].
The Small Claims Court offers a cost-effective solution for consumers, with a €25 fee for bringing a claim [2]. Its success in settling disputes without the need for a solicitor makes it an attractive option for many consumers.
Despite the decline in usage, the Small Claims Court remains an important avenue for consumers to resolve small disputes. The Irish Times editorial emphasizes the importance of protecting the court’s relevance, hinting at the need for measures to address the issues that may be causing the decline [3].
[1] O'Connor, D. (2021, February 10). Small Claims Court usage falls by more than half in 2020. The Irish Times. https://www.irishtimes.com/business/consumer-affairs/small-claims-court-usage-falls-by-more-than-half-in-2020-1.4484457
[2] Courts Service. (n.d.). Small Claims Court. https://www.courts.ie/small-claims-court
[3] O'Connor, D. (2020, November 25). Small Claims Court: Is it still relevant? The Irish Times. https://www.irishtimes.com/business/consumer-affairs/small-claims-court-is-it-still-relevant-1.4431079
[4] O'Connor, D. (2020, November 25). Small Claims Court: Is it still relevant? The Irish Times. https://www.irishtimes.com/business/consumer-affairs/small-claims-court-is-it-still-relevant-1.4431079
Policy-and-legislation efforts to address the decline in Small Claims Court usage should focus on increasing awareness and understanding of the court's relevance and simplifying procedures to make them more accessible for ordinary members of the public. In politics, this issue could be addressed through debate and proposed legislation related to general-news surrounding consumer protection and court affairs.
