RECOVERY OF SMALL DEBTS. (Hansard, 22 May 1828)

Mr. Secretary Peel
said, he rose, pursuant to notice, to move for leave to bring in a bill, the object of which was the more speedy Recovery of Small Debts. Speaking of the system which prevailed in the country generally, he believed it would fee found better, in most instances, to abandon any claim which an individual might have for a certain sum, than to attempt to recover; it, as the law now stood. The expense of proceeding in the county courts was so I enormous, and their jurisdiction so confined, that in many cases, the party seeking redress there was actuated by feelings of pique and resentment, rather than by any; hope of recovering his debt. The attention of the House had been repeatedly called to this subject, and great difficulty had been experienced in attempting to devise a remedy for the present defective state of the law. A noble lord (Althorp) had: given much consideration to the subject, and several bills had been introduced by him. Those measures had not met with the approbation of the House, and it was at the desire of that noble lord, in the course of last session, that he (Mr. Peel) had undertaken to introduce a bill. The first bill brought in, proposed to enable the lord lieutenants of counties to appoint assessors, who were to receive considerable salaries, and a separate court was to be established in those towns where the ordinary courts were on a small scale.; Several objections were urged against this plan, and the impropriety of placing the appointment of assessor in the hands of the lord lieutenant was very justly pointed out. By the subsequent bill, the appointment was left with the Crown. It was there provided, that assessors should preside in the county courts, and they were; to look to the Crown for their salary. Again, it was proposed, that the commissioners appointed to discharge the duties connected with the Insolvent Debtors Court should adjudicate in cases of small debts, and should, for that purpose, make circuits through the country. To these measures objections were also taken, and they were abandoned. He should propose to adopt in each county the ancient institution of the county court, and to extend its jurisdiction from debts of 40s., which 877 was the present limit to debts of 10l. A gentleman very eminent in the legal profession had drawn up this bill, and he believed that, on examination, its enactments would be found admirably adapted to effect the intended object. The bill made no alteration in the original constitution of the county court. It rendered the whole proceeding most plain and simple: the form of the plaint was set forth, and it specified the fees that were to be paid. As different counties varied in extent, it provided for the division of the large counties into districts; and it further provided, that the sub-sheriff should give notice of the time and place where the court was to be held. The proceeding would be conducted on the principle of trial by jury in a certain way; the qualification of jurors to be the same as that now required in cases of trials at Nisi Prius in Westminster-hall. A power was given to the judge before whom a case was tried to grant a new trial, on proper grounds being advanced for that proceeding. It was proposed that the remedy should not be against the person of the debtor, but against his goods. He conceived that the provisions of the bill were calculated to promote the object in view. The only part of it which seemed at all likely to excite opposition was that which was connected with the compensation of persons who were interested in the continuance of the existing system. There were, as the House knew, individuals in the higher courts, whose interests were materially concerned; and he could not introduce a measure of this nature, without providing a suitable compensation for those whose interests were at stake. He was very sorry that offices of the nature of those to which he alluded were in existence; but when measures were adopted for effecting a reform in the administration of the law, provision ought to be made for those whose offices would, in consequence of that reform, be clone away with. He, therefore, proposed to award compensation for the loss of offices that were conferred for the term of life. As to compensation, having reference to the quantity of practice now enjoyed by individuals under the present system, and which might be lessened by the intended alteration, he did not mean to propose any. In the different bills introduced for the abolition of writs of error and other technical forms, the same practice had been followed. He moved, for leave to bring in a bill "for the more easy 878 Recovery of Small Debts in the county courts of England and Wales, and for extending the jurisdiction thereof."

§ Mr. Hume
was happy to hear that the right hon. gentleman intended to abolish the taking of the person, in all cases of debt decided against the defendant in the county court; because he held the principle of arresting the person to be contrary sound sense, good policy, and humanity. If the right hon. gentleman admitted the principle in the case of persons against whom debts of 10l. were recovered, he hoped he would extend the exemption from arrest to debtors generally. The bill brought in by the Solicitor-general last year, which extended the exemption from arrest from 10l. to 20l., had been of little service; for he who would swear to a debt of 10l., which had no existence, would as readily extend his oath to 20l. During the last year, the persons confined on mesne process, in the five prisons, were, in comparison with those confined under judgment obtained, as eight to one.

§ Mr. D. W. Harvey
approved of the bill, and trusted that the valuable principle recognized in it would not be restricted to 10l. The right hon. gentleman had told them, that the qualifications of the persons were to be the same as those who tried causes in Westminster-hall at Nisi Prius. Why not, then, since they were equally qualified, enable them to try causes to the same amount? He did not wish to extend the powers of the county courts unlimitedly, but he thought that they might conveniently be extended to the trial of 20l. cases. There was one thing he hoped would be provided for; and that was, the responsibility of the judges, who he understood were to be drawn from the sub-sheriffs. He begged also to suggest, that it might be well to enable a party, if the verdict went against him, to pay by instalments; so that a man should not be harassed by immediate execution upon judgment.

§ Mr. C. Wood
observed, that as the extension of the jurisdiction of the county courts would greatly increase the number of causes in those courts, and as the consequence must be, that a large income would be derived from the increase of fees, it would be proper to introduce a clause in the bill to enable the House to regulate those fees hereafter.

Alderman Wood
expressed his cordial concurrence in the policy of the bill. The 879 Small Debt Society had lately relieved three hundred individuals, who had been confined for months for debts under 2l. 14s. each. This was a lamentable state of things, which loudly called for the interference of the legislature; for while those unfortunate people were in prison, their families were probably receiving assistance from the poor-rates. He thought it would be wise to limit arrests to sums above 20l.

Mr. Secretary Peel
said, that his object was, to enable the creditor to allege his debt by the simplest and most unexpensive process. For instance, instead of a cumbrous declaration, the form proposed in the bill was—"A B complains of C D. that he owes him 10l. for goods delivered on the 1st day of March, 1827." Before the bill was extended to debts of a larger amount, it would be wise to watch the progress of the bill as it now stood, and ascertain how it worked. At present, he proposed, in the case of a debt of 15l. to allow the creditor to take advantage of the provisions of the bill. But 10l. was a very considerable sum to the lower classes, and he thought it better not to begin with a larger. If the bill answered, it might be extended to 20l. He wished to reserve to the court the power of allowing the debtor to discharge his incumbrances by instalments; which would prevent an unfortunate man having his goods taken away from him, while, at the same time, it would be security to the creditor for the payment of his debt. He would limit these instalments to the space of four months, and the ulterior process of seizing the debtor's goods might be resorted to by the creditor in default of payment at the end of that period. The fees of the bailiff he had left the magistrates of the county to settle; but for the sheriff's fees, he had settled that they should in no case exceed one shilling.

§ Mr. G. Lamb
expressed his gratitude to the right hon. gentleman for this measure, and thought it might be advantageously extended to debts of a larger amount. He hoped to see the time when there would be no imprisonment for debt in this country. He thought it better, however, to proceed by steps than to attempt too much at one stride; and he would suggest to his hon. friends the adoption of an old proverb.—"Do not work a willing horse to death." The right hon. gentleman had proceeded cautiously, and had never found it necessary to retrace his steps; which he 880 might be compelled to do if he proceeded with that rapidity with which some of his friends wished him to proceed.