Small claims appeals

The Department for Constitutional Affairs has published a consultation paper, proposing to extend the protection against legal costs in small claims cases to cover appeals. At present, when a small claim goes to appeal, the successful party is able to claim costs, which may discourage parties from appealing, or indeed bringing small claims to court. For example, if someone sues a multinational corporation for defective goods and wins, they could face the possibility of an appeal with the prospect of being ordered to pay substantial legal costs if the appeal succeeded. The paper proposes that either the costs protection in small claims cases be extended to cover appeals, or a cap of £1,000 on appeal costs. The paper is at www.dca.gov.uk and consultation closes on 2 December.