Commencing a claim - Allocation of business between the High...

Learning Outcomes

This article outlines the rules governing the allocation of civil claims between the High Court and the County Court in England and Wales. After reading this article, you should understand the primary factors influencing where a claim should be commenced, including the financial value, the complexity of the issues, and the public importance of the case. This knowledge will enable you to identify the appropriate court for initiating proceedings and apply these principles to SQE1-style single best answer questions. You should also be able to recognise when specific causes of action are properly brought only in the High Court (for example defamation or judicial review), how to use the Business and Property Courts and other specialist lists, and how the choice of forum interacts with track allocation (including the Intermediate Track and fixed recoverable costs).

SQE1 Syllabus

For SQE1, you are required to understand the practical implications of choosing between the High Court and the County Court when commencing proceedings, including determining the correct court based on the specific circumstances of a claim and applying the relevant rules and Practice Directions, with a focus on the following syllabus points:

• The financial thresholds determining jurisdiction between the High Court and County Court.
• Factors beyond financial value, such as complexity and public importance, that influence allocation.
• The basic structure and function of the County Court and the main divisions of the High Court.
• The role of specialist courts within the High Court structure.
• Applying these rules to advise a client on where to initiate their claim.
• How financial value is assessed and stated on the claim form (including CPR 16.3 brackets for the County Court and PD 7A guidance for High Court unspecified claims).
• Categories typically reserved to the High Court (e.g. judicial review and most defamation/media claims), and the availability of transfer between courts.
• The interaction between forum choice and track allocation, including the Intermediate Track (complexity bands and fixed recoverable costs).

Test Your Knowledge

Attempt these questions before reading this article. If you find some difficult or cannot remember the answers, remember to look more closely at that area during your revision.

1. What is the general financial threshold above which a money claim can be started in the High Court?
   1. £25,000
   2. £50,000
   3. £100,000
   4. There is no specific threshold; it depends solely on complexity.
2. A personal injury claim valued at £75,000 should generally be commenced in which court?
   1. County Court only
   2. High Court only
   3. Either the County Court or the High Court
   4. Magistrates' Court
3. Which division of the High Court typically deals with complex contract and tort claims?
   1. Chancery Division
   2. Family Division
   3. King's Bench Division
   4. Commercial Court

4. True or false? A case involving a novel point of law with significant public importance, valued at £80,000, must be started in the County Court due to its value.

Introduction

Once the pre-action steps have been concluded and it becomes necessary to commence court proceedings, an essential decision for the claimant is selecting the appropriate court: the High Court or the County Court. This decision is not merely administrative; it impacts the procedure, costs, and judicial resources allocated to the case. The Civil Procedure Rules (CPR), particularly Practice Direction 7A (PD 7A), provide guidance on this allocation, ensuring that cases are handled in the most suitable forum based primarily on their value, complexity, and significance. Understanding these rules is fundamental for initiating litigation correctly. Where proceedings are started in the “wrong” forum, the court has broad powers to transfer the claim to the appropriate court and may make costs orders reflecting any unnecessary expense (see CPR Part 30 and PD 7A).

Key Term: Financial Value
The amount of money claimed by the claimant, excluding interest and costs, and disregarding potential reductions for contributory negligence or the value of any counterclaim.

Factors Determining Allocation

Several factors influence whether a claim should commence in the High Court or the County Court. While financial value is often the primary determinant, other considerations play a significant role.

Financial Value

The monetary value of a claim is the starting point for allocation.

The general rules are:

• Claims valued at £100,000 or less must generally be started in the County Court (PD 7A, para 2.1).
• Claims valued at more than £100,000 may be started in the High Court (PD 7A, para 2.1).

However, specific rules apply to personal injury claims:

• Claims including damages for personal injury must generally be started in the County Court if the total value is £50,000 or less.
• Personal injury claims valued at more than £50,000 may be started in the High Court (PD 7A, para 2.2).

Value is assessed in line with CPR 16.3:

• Interest and costs are disregarded.
• Any contributory negligence deduction is disregarded at the outset.
• The presence of a counterclaim does not increase the claimant’s statement of value.

For unspecified money claims, the County Court statement of value must indicate the correct bracket (CPR 16.3(2)). Where an unspecified claim is commenced in the High Court, PD 7A expects the claim form to state that the claimant “expects to recover more than £100,000” (PD 7A, para 3.6). Accurately stating value matters not only for issue fees and enforcement of costs budgeting duties but also to justify the chosen forum at the outset.

Key Term: Complexity
Refers to the detailed nature of the facts, legal issues, remedies, or procedures involved in a claim, potentially requiring specialized judicial handling.

Key Term: Public Importance
The significance of a claim's outcome beyond the immediate parties, potentially affecting the public at large or setting legal precedents.

Complexity and Importance

Even if a claim’s value suggests the County Court, it may be more appropriate for the High Court if other factors are present. PD 7A, para 2.4 states a claimant should consider starting a claim in the High Court if it involves:

• Significant complexity: heavy expert evidence, extensive disclosure (particularly electronic disclosure), technical subject matter (e.g. patents, complex construction matters), or complex conflict of laws issues.
• Public importance: where the outcome affects others beyond the parties, involves rights under the Human Rights Act 1998, raises continued or widespread points of public law, or will likely set an important precedent.

Complex contract/tort claims may fit best in the King’s Bench Division (including the Commercial Court) and business/property disputes in the Chancery Division and its lists within the Business and Property Courts. Complexity alone does not compel High Court issue; proportionality and the overriding objective remain central.

A practical subset of this factor is where the subject matter is usually or necessarily heard in specialist High Court lists (for example, the Technology and Construction Court for technically complex construction and engineering cases, or the Patents Court for higher value/complex patent claims). In contrast, many business disputes of moderate value and complexity can be effectively managed in the County Court, including on the multi-track.

A further sub-category is where the law or procedure makes the High Court the natural or required forum:

• Judicial review is brought in the Administrative Court of the King’s Bench Division.
• Defamation and related media claims are generally conducted in the King’s Bench Division (Media and Communications List).
• Certain complex chancery matters—such as company and insolvency matters of significance—are often better suited to the High Court’s specialist lists.

Worked Example 1.1

A company wishes to sue a supplier for breach of contract, claiming damages of £90,000. The case involves standard contractual interpretation and common factual disputes.

In which court should the claim be started?

Answer:
The claim should be started in the County Court. Its financial value is below £100,000, and there are no apparent factors relating to complexity or public importance that would justify commencing it in the High Court.

Worked Example 1.2

An individual plans to bring a claim against a government department challenging a decision based on human rights grounds. The monetary value of the potential damages is estimated at £70,000.

Where should this claim likely commence?

Answer:
Although the value is below the £100,000 threshold, the claim should likely commence in the High Court (specifically the Administrative Court within the King's Bench Division). This is due to the public importance of the human rights issues involved and the potential need for judicial review knowledge.

Worked Example 1.3

A journalist brings a claim for defamation valued at £30,000 concerning a national broadcast. The issues include truth, serious harm, and public interest.

In which court should the claim be started?

Answer:
The claim should be started in the High Court, King’s Bench Division (Media and Communications List). Defamation and cognate media claims are generally brought in the High Court due to their complexity, specialist judicial knowledge, and broader public interest.

Worked Example 1.4

A contractor sues a developer for £180,000 over allegations of defective piling and delay, with multiple experts (geotechnical, programming) likely and heavy technical disclosure.

Is the High Court appropriate?

Answer:
Yes. Although below the informal £250,000 guidance often seen in the TCC, the technical nature, heavy expert input, and substantial disclosure point to issuing in the Technology and Construction Court within the High Court.

Worked Example 1.5

A claimant issues a straightforward £70,000 debt claim in the High Court. The defendant applies to transfer it.

What is the likely outcome?

Answer:
The court will likely transfer the claim to the County Court under CPR Part 30 because the value and simplicity do not justify High Court resources. The claimant may face adverse costs for mis-issuing inappropriately.

Exam Warning

Do not assume that a claim exceeding the financial threshold must be started in the High Court. Claimants retain a choice, and if the case lacks complexity or public importance, issuing in the High Court might lead to criticism or transfer to the County Court, potentially with adverse costs consequences. Conversely, a lower value claim with significant complexity or importance might correctly be initiated in the High Court. Always consider all factors.

The County Court

The County Court handles the majority of civil litigation in England and Wales. It has a broad jurisdiction covering most types of civil disputes.

Key Term: County Court
A national court with numerous local hearing centres, handling the bulk of civil claims, including contract, tort, recovery of land, and family matters, generally for claims up to £100,000.

There is a single County Court with many hearing centres. Money-only claims are typically issued through centralised facilities (including online via Money Claim Online). When a claim is defended, it is usually transferred to a convenient hearing centre—often the defendant’s home court for individuals, or a hearing centre preferred by the claimant when the defendant is a company—so that case management and trial can proceed locally.

For procedural efficiency, claims within the County Court are allocated to different 'tracks' based primarily on value and complexity after a defence is filed (CPR Part 26):

• Small Claims Track: Generally for claims up to £10,000 (with lower limits for personal injury and housing disrepair). For personal injury, note the lower thresholds for pain, suffering and loss of amenity in some contexts. Features simplified procedures and limited costs recovery.
• Fast Track: Generally for claims over £10,000 up to £25,000, with trials expected to last no more than one day and tightly limited expert evidence.
• Intermediate Track: Generally for claims over £25,000 up to £100,000, where trials last no more than three days and oral expert evidence is limited (typically no more than two experts per party). Cases are assigned to complexity bands (1–4) and are subject to Fixed Recoverable Costs (FRC). Certain categories (e.g., many clinical negligence claims unless breach and causation are admitted; mesothelioma/asbestos; abuse claims involving children or vulnerable adults) are usually excluded and allocated to the multi-track.
• Multi-Track: For claims over £100,000, or for cases of any value that are too complex for the other tracks or fall within the exclusions above. Case management is more bespoke.

In deciding track, the court also weighs qualitative criteria (CPR 26.8), including the nature of remedy, complexity of fact/law, number of parties, scope of oral evidence, and importance to non-parties, as well as parties’ views and circumstances. These qualitative factors mirror the forum choice: a modest-value but technically demanding dispute may be an Intermediate Track or Multi-Track case in the County Court and still appropriately remain there rather than moving to the High Court.

A practical point: when drafting the claim form for an unspecified County Court money claim, CPR 16.3(2) requires you to select the correct bracket for the expected recovery (“not more than £10,000”, “more than £10,000 but not more than £25,000”, or “more than £25,000” or “cannot say”). The bracket informs allocation and fees.

The High Court

The High Court deals with more substantial and complex civil cases and acts as an appellate court.

Key Term: High Court
A senior court based primarily in London but with District Registries nationwide, handling high-value, complex civil claims and appeals. It comprises three Divisions: King's Bench, Chancery, and Family.

The King’s Bench Division (KBD) hears a wide range of contract and tort claims, including personal injury, negligence, debt, and enforcement matters; it also houses the Administrative Court, Commercial Court, Admiralty Court, and the Media and Communications List. The Chancery Division handles business and property disputes (company, insolvency, trusts, probate, real property) and intellectual property work, including the Patents Court and the Intellectual Property Enterprise Court. The High Court sits at the Royal Courts of Justice and in District Registries across England and Wales. In London, case management and interlocutory business is commonly dealt with by Masters; outside London, comparable business is handled by District Judges and Circuit Judges.

Key Term: Business and Property Courts
An umbrella term for specialist courts and lists across the King’s Bench and Chancery Divisions dealing with complex business, financial, property, competition, and intellectual property disputes, in London and major regional centres.

Divisions of the High Court

• King's Bench Division (KBD): The largest division, dealing primarily with contract and tort claims, including personal injury, negligence, breach of contract, and defamation. It also houses specialist courts and lists, including the Administrative Court and the Media and Communications List.
• Chancery Division: Specialises in areas such as business and property disputes, trusts, contentious probate, insolvency, company law, and intellectual property. Its work is now grouped within the Business and Property Courts framework.
• Family Division: Handles complex family law matters. (Less relevant for typical SQE1 Dispute Resolution scenarios focusing on contract/tort).

Specialist Courts

Within the KBD and Chancery Division are specialist courts designed to handle specific types of complex litigation efficiently. Key examples include:

Key Term: Commercial Court
A specialist court (within KBD) dealing with complex national and international business disputes, banking, finance, insurance, commodities and shipping-related commercial disputes.

Key Term: Technology and Construction Court (TCC)
A specialist KBD court for complex building, engineering, technology, and related professional negligence disputes; also public procurement challenges. It frequently handles high-value disputes, but complexity can justify TCC jurisdiction in lower-value cases.

• Administrative Court (KBD): Judicial review and statutory appeals concerning decisions of public bodies (including human rights issues).
• Admiralty Court (KBD): Shipping and maritime disputes (e.g. collisions, salvage, limitation of liability).
• Circuit Commercial Court (KBD): Regional commercial lists suitable for moderately complex commercial disputes outside the Commercial Court.
• Media and Communications List (KBD): Defamation, misuse of private information, data protection claims requiring media law knowledge.

Key Term: Intellectual Property Enterprise Court (IPEC)
A streamlined specialist court within the Chancery Division for intellectual property disputes, featuring capped recoverable costs and a damages cap (often up to £500,000). Suitable for modest to mid-value IP cases requiring proportionate procedure.

• Patents Court (Chancery): Complex or higher-value patent and technical IP cases (often exceeding the IPEC cap), typically requiring technical judicial knowledge and more extensive evidence.

In addition to subject-matter fit, proportionality remains central. For instance, a mid-value trademark claim with limited issues may be well-suited to IPEC; a technically complex patent case with extensive experiments will typically go to the Patents Court. Similarly, a construction dispute requiring multiple experts and a long trial generally warrants the TCC; a straightforward supply contract claim with a short trial may remain in the County Court’s multi-track.

Key Term: Administrative Court
The part of the KBD that hears judicial review claims and certain public law appeals/claims, often raising issues of public importance or broader legal questions.

Revision Tip

While you don't need detailed knowledge of each specialist court's procedure for SQE1, be aware of their existence and broad areas of jurisdiction. Recognising when a claim's subject matter clearly falls within a specialist court's remit (e.g., a complex construction dispute in the TCC) demonstrates practical understanding.

Key Point Checklist

This article has covered the following key knowledge points:

• The allocation of civil claims between the High Court and County Court is essential for commencing proceedings correctly.
• Financial value is the primary factor: generally, claims up to £100,000 (£50,000 for personal injury) belong in the County Court, while higher value claims may start in the High Court.
• Complexity of facts or law, and public importance, can justify starting a lower-value claim in the High Court or a higher-value claim in the County Court.
• Some categories are naturally or necessarily brought in the High Court (e.g. judicial review in the Administrative Court; most defamation/media claims in the KBD Media and Communications List; many patents cases in the Patents Court).
• The County Court handles the majority of civil claims and uses a track allocation system (Small Claims, Fast Track, Intermediate Track, Multi-Track), with qualitative factors under CPR 26.8 influencing allocation.
• The High Court consists of the King's Bench, Chancery, and Family Divisions, handling more complex and high-value cases, with District Registries across England and Wales.
• Specialist courts within the High Court Divisions (e.g., Commercial Court, TCC, IPEC) deal with specific types of complex litigation, often within the Business and Property Courts framework.
• If a claim is started in an inappropriate court, the court has power to transfer it and may make costs orders reflecting the misallocation.
• Choosing the correct court aligns with the CPR's overriding objective of dealing with cases justly and at proportionate cost.

Key Terms and Concepts

• Financial Value
• Complexity
• Public Importance
• County Court
• High Court
• Business and Property Courts
• Administrative Court
• Technology and Construction Court (TCC)
• Commercial Court
• Intellectual Property Enterprise Court (IPEC)