Disputes over unpaid invoices, faulty services, damaged goods, or money owed can quickly become stressful. In England and Wales, the Small Claims Court is designed to help individuals and small businesses resolve lower-value disputes without expensive legal representation.
However, court is not always the easiest or fastest route. Mediation—especially with a fixed-fee mediator—can often resolve disputes more quickly, with less stress and lower overall cost.
This article explains the small claims process and why mediation may be the smarter choice.
What Is the Small Claims Court?
The Small Claims Court is part of the County Court and is used for disputes worth:
- Up to £10,000 in England and Wales
- Up to £5,000 in Scotland (Simple Procedure)
- Typically consumer or contract disputes
Common claims include:
- Unpaid invoices
- Faulty goods or services
- Property damage
- Refund disputes
Legal representation is allowed but usually not necessary.
Step-by-Step: Small Claims Court Procedure (England & Wales)
1. Try to Resolve the Dispute First
Before starting a claim, you are expected to:
- Contact the other party in writing
- Explain the issue clearly
- Give them a reasonable deadline to respond
Failing to attempt resolution can negatively affect your case.
2. Send a Letter Before Claim
If informal communication fails, you must send a Letter Before Claim, which includes:
- The amount claimed
- The reason for the claim
- Evidence supporting your position
- A deadline (usually 14 days)
This step is mandatory and gives the other party one final chance to settle.
3. Start the Claim
You can issue a claim:
- Online via Money Claim Online (MCOL)
- By post using a paper form
Court fees depend on the claim amount and must be paid upfront.
4. Defendant Responds
The defendant has 14 days to:
- Pay the claim
- Admit part of it
- Defend the claim
- Request more time (up to 28 days total)
If no response is received, you may request a default judgment.
5. Mediation Offered by the Court
For defended claims, the court often offers free telephone mediation through the Small Claims Mediation Service.
If both parties agree:
- A mediator helps negotiate settlement
- The case may settle without a hearing
- No admission of fault is required
6. Court Hearing (If Mediation Fails)
If no settlement is reached:
- A judge hears both sides
- Evidence and witnesses may be presented
- A binding decision is made
Even if you win, recovering money can take time and further enforcement action.
The Downsides of Small Claims Court
While designed to be simple, the process can still involve:
- Paperwork and deadlines
- Stress and uncertainty
- Time off work
- Upfront court fees
- Risk of non-payment even after winning
For many people, this leads to frustration rather than resolution.
Why Mediation Can Be a Better Solution
What Is Mediation?
Mediation is a voluntary, confidential process where a neutral third party helps both sides reach an agreement.
The mediator does not decide who is right or wrong—they help both parties find a workable solution.
Benefits of Mediation Over Court
✔ Faster resolution (often within days)
✔ Lower overall cost
✔ Less stress and confrontation
✔ Confidential discussions
✔ Flexible outcomes (payment plans, partial settlements, apologies)
✔ Preserves business or personal relationships
Fixed-Fee Mediation: A Practical Alternative
Instead of going through court, many people choose to hire a private mediator for a fixed fee.
Why Fixed-Fee Mediation Makes Sense
- Clear, predictable cost
- Often cheaper than court fees and lost time
- No risk of enforcement problems
- Settlement agreements are legally binding
For small claims, a fixed-fee mediator can resolve disputes in a single session, saving weeks or months of court proceedings.
Court or Mediation: Which Should You Choose?
| Option | Best For |
|---|---|
| Small Claims Court | When the other party refuses to engage or mediation fails |
| Mediation (Fixed Fee) | Faster, cooperative resolution with lower stress |
| Court-Provided Mediation | Good starting point if both parties agree |
In many cases, mediation first, court second is the most efficient approach.
Final Thoughts
The Small Claims Court exists to provide access to justice—but it is not always the simplest route. Mediation offers a faster, more cost-effective way to resolve disputes, especially when using a fixed-fee mediator who can help both sides reach agreement without the pressure of court.
If you are facing a small claim, exploring mediation early could save you time, money, and stress.