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When the ‘No Costs Rule’ does not apply in the Small Claims Track

Richard Moss Solicitors was instructed to assist a client appeal against a County Court Judgment requiring her to pay £4,590 to the claimant.

Shortly before the appeal hearing that had been listed on 20 March 2013, Richard Moss persuaded the claimant to agree that (a) his client’s appeal be allowed (b) the claimant’s County Court Judgment against his client be set aside (c) the claimant’s claim against his client be struck out and (d) the claimant pays his client’s legal costs.

The result Richard Moss obtained for his client is unremarkable except that the claimant’s claim was for less than £10,000 and so it had been allocated by the Court to the ‘Small Claims Track’ in which the general rule is that the ‘winner’ cannot recover legal costs from ‘the loser’.

Despite the usual ‘no costs rule’ applicable in the Small Claims Track, Richard Moss successfully negotiated an agreement whereby the claimant paid his client’s costs.