Extension of Small Claims Procedure to Business
From 11 January 2010 businesses will be able to avail of the small claims procedure for certain claims. The Small Claims Procedure is a service provided by District Court offices and is designed to handle consumer claims cheaply without involving a solicitor. Previously this procedure was only available to consumers when claiming against a business but was not open to a business seeking to claim against another business.
The new rules will allow claims from a business against another business in respect of goods or services not exceeding €2000. The goods or services must have been purchased from someone selling them in the course of business. The procedure cannot be used in respect of debts, personal injuries or breach of leasing or hire purchase agreements.
The procedure does not replace the existing District Court procedure which has been relied upon by businesses to date. Instead, business will have a choice of the two routes.
In tandem with this development the Minister for Justice, Equality and Law Reform is reviewing the current requirement that limited liability companies engage legal representation for court based proceedings.
Matthew Austin