HC Deb 21 July 1994 vol 247 cc406-7W
Mr. Bermingham

To ask the Parliamentary Secretary, Lord Chancellor's Department what are the implications of the recent ruling in Afzal v. Ford Motor Company Ltd., for the right of plaintiffs, making a personal injury claim of under £1,000, to choose whether their claim is heard in the county court or small claims court; and if he will make a statement.

Mr. John M. Taylor

Under order 19 of the county court rules any claim not exceeding £1,000 is automatically referred to arbitration on the filing of a defence. In these circumstances, recoverable costs are strictly limited. However, if the court considers, for example, that the case is one of exceptional complexity, it may order a trial in open court, where full costs may be recoverable. The recent judgment of the Court of Appeal in Afzal v. Ford Motor Company Ltd. made it clear that where, in the opinion of the court, a claim had been deliberately overstated to avoid automatic reference to arbitration, the court could limit the recoverable costs to those allowed under order 19, rule 4.

Mr. Bermingham

To ask the Parliamentary Secretary, Lord Chancellor's Department what are the implications of the recent ruling in Afzal v. Ford Motor Company Ltd., for the possibility, for the future, of limited costs being made available in those lower value personal injury claims heard in the small claims court; and if he will make a statement.

Mr. John M. Taylor

My Department recently consulted on proposals for new procedures to apply to personal injury claims not exceeding £1,000. We are currently evaluating the responses to this consultation and are taking into account the implications for our proposals of the judgment of the Court of Appeal in the case of Afzalv. Ford Motor Company Ltd. and related appeals.

Mr. Bermingham

To ask the Parliamentary Secretary, Lord Chancellor's Department what are the implications of the recent ruling in Afzal v. Ford Motor Company Ltd., in respect of the referral of all personal injury claims valued at under £1,000 being referred to arbitration; and what plans there are to introduce a right of appeal for plaintiffs who believe their claims have been undervalued.

Mr. John M. Taylor

Under order 19 of the county court rules, any claim not exceeding £1,000 is automatically referred to arbitration on the filing of a defence. The recent judgment of the Court of Appeal in Afzalv. Ford Motor Company Ltd. made it clear that, where, in the opinion of the court, a claim had been deliberately overstated to avoid such automatic reference, the court could limit the recoverable costs to those allowed under order 19, rule 4.

Order 19, rule 8 explains the circumstances when a party may apply to set aside an arbitrator's award. There are no plans to introduce additional rights of appeal.

Mr. Bermingham

To ask the Parliamentary Secretary, Lord Chancellor's Department if he will make it his policy that there will be no increase in the small claims court limit until consultation by his Department on lower value personal injury claims has been concluded and any resulting change in the small claims court rules implemented; and if he will make a statement.

Mr. John M. Taylor

The consultation period for the proposals to apply to small personal injury claims not exceeding £1,000 closed earlier this year. The responses are being analysed and evaluated. The Lord Chancellor will review the small claims limit later this year. Full consultation will take place before a final decision on a new limit is made.