Press Release
26th July 2007

Bar to Justice Should be Raised – McNeil
The “prohibitively low” ceiling on the value of claims which can be determined by the Small Claims Court in Scotland is denying people justice and should be raised, says to MSP for Greenock and Inverclyde, Duncan McNeil.

He has made representations to Justice Minister, Kenny MacAskill, branding the current system a, “cowboys’ charter” and calling for the limit in Scotland to be brought into line with the ceiling south of the border.

The current upper limit on the value of claims which can be determined by the Small Claims Court in Scotland is £750.  In England and Wales, the small claims ceiling is £5000. 

This means, Mr McNeil told the Minister, that, “any member of the public in Scotland wishing to pursue a loss in excess of £750 will therefore be obliged to embark on the expensive, lengthy and uncertain course of engaging the services of a lawyer.”  The inability to do so, he argued, is denying justice to many individuals with perfectly valid claims.

Mr McNeil continued:

“This limit, I believe, needs to be revisited.  Today, claims for, say, damage to a vehicle done by a negligent motor mechanic could easily run into thousands of pounds.  Another topical example is that of unfair bank charges, which I have been assisting many constituents to recover and which regularly amount to several thousand pounds.  In these cases, the threat of a small claims action of up to £5,000 in England is considerably more of an encouragement to the bank to settle than the prospect of a £750 action in Scotland. 

“It is doubtless for these reasons that the current system has been described as a ‘cowboys’ charter’ and I am concerned that many would-be pursuers with perfectly valid claims are being denied justice.  Accordingly, I would be most grateful for your assurance that action will be taken to raise this prohibitively low ceiling and bring us into line with England.”

In response to these representations, the Minister has advised Mr McNeil that he is, “considering the issue and will make an announcement in due course.”

“There is,” he continued, “a need to ensure that whatever is done to these thresholds, they are updated to a sensible level which serves the needs of users of the court system and which will have the support of the Parliament.”

Welcoming this signal that the Executive may agree to the change, Mr McNeil told the Telegraph:

“I am glad that the Minister acknowledges that this limit needs to be re-visited.  It is far too low to let the Small Claims Court do the job for which it was intended and it is denying justice to people who have been wronged.”

Case Study
Mr McNeil made representations to the Minister after being contacted by a constituent, Mr Brian Holmes of Aberdour Place, Inverkip.

While work was being carried out on Mr Holmes’ £9000 car under warranty, it sustained damage which will cost £2,000 to repair.  The companies in question, however, simply refused to reimburse Mr Holmes.

Mr Holmes said:

“Mine was exactly the sort of case for which the Small Claims Court was made.  But the £750 ceiling meant I couldn’t take it there.  Instead, I would have needed to bring full legal proceedings and I was advised that, while I had a strong case for damages, I could have been looking at a legal bill for between £9,000 and £10,000.

“Sums of that nature might be nothing to a large company, but what ordinary hardworking person would be prepared to risk it?”  
ENDS

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