The rise in fees on commercial disputes amounting to more that £10,000 appears to have led to a significant slump in the number of CCJs issued to businesses. This has prompting concerns that smaller businesses and contractors are now being prevented from pursuing claims because the cost means it isn’t worth it.
This in effect is pricing some firms out of court action and in some cases this will let firms off the hook. Data supplied by the Registry Trust revealed that the number of CCJs issued to businesses in England and Wales in the first 6 months of 2016 had fallen by 19%.
Considering that the number of CCJs issued was 42,091 in the period this represents a significant number of cases going uncontested and the biggest fall in numbers and value since before the financial crisis of 2008.
The fall in numbers has been largely blamed on the Ministry of Justice’s decision to add a fee amounting to 5% of a claims value for disputes over more that £10,000.
Bar Council chair Chantal-Aimée Doerries QC has described the fee rise as ‘a very real issue’ As it was smaller businesses that would be most impacted by the increase which can add several thousand pounds to fees on six figure claims.