Small Claims Limit

EDM number 2542 in 2005-06, proposed by Austin Mitchell on 11/07/2006.

That this House opposes any increase in the small claims limit for personal injury cases, given that it would inevitably result in injustice to many accident victims who, without legal help, could not realistically hope to be a match for legally represented insurance companies who, even now, when facing claims brought by solicitors, far too frequently refuse to admit even obvious liability, or to discuss damages reasonably; believes that their approach to the defence of claims would become even more dogged, and even deliberately unfair, if insurers knew they only had to face an unrepresented claimant who is unable to value their own entitlement to damages, let alone to assemble evidence or negotiate their way through the minefield of the law and court procedures, in addition to dealing with the tricks and tactics employed under the current costs rules by insurers who too frequently see it as all part of the game to avoid or minimise any payment of damages, so that the average constituent is unlikely even to try to bring a claim if they are unrepresented; and further believes that, given that general damages in this country are far lower than most people assume, the harmful effects of any rise in the small claims limit would be likely to affect about 85 per cent. of claims.

This motion has been signed by a total of 68 MPs.