Commencing a claim - Allocation of business between the High Court and the county court

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.

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. You should be able to determine the correct court based on the specific circumstances of a claim, applying the relevant rules and Practice Directions.

As you revise this topic, focus on:

  • 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.

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.

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.

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.

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).

Complexity and Importance

Even if a claim's value suggests the County Court, it may be more appropriate for the High Court if certain 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: This relates to the facts, legal issues, remedies sought, or procedural steps involved. Cases involving detailed points of law, substantial factual disputes, or requiring specialized judicial knowledge often warrant High Court attention.
  • Public importance: Where the outcome of the claim is significant to the public in general, such as cases involving human rights, significant points of statutory interpretation, or matters attracting widespread public interest.

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.

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.

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.

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). Features simplified procedures and limited costs recovery.
  • Fast Track: Generally for claims between £10,001 and £25,000, expected to last no more than one day at trial, with limited expert evidence.
  • Multi-Track: For claims over £25,000 or complex cases falling outside the other tracks. Case management is more bespoke.

Money-only claims are typically issued through the County Court Money Claims Centre (CCMCC).

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.

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.
  • Chancery Division: Specialises in areas such as business and property disputes, trusts, contentious probate, insolvency, company law, and intellectual property.
  • 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:

  • Commercial Court (KBD): Complex national and international business disputes, banking, finance, insurance.
  • Technology and Construction Court (TCC) (KBD): Disputes relating to building, engineering, technology, and professional negligence within those sectors. Usually handles claims over £250,000 unless complex points of law or international elements are involved.
  • Administrative Court (KBD): Judicial review of public body decisions.
  • Admiralty Court (KBD): Shipping and maritime disputes.
  • Intellectual Property Enterprise Court (IPEC) (Chancery): Intellectual property disputes, often offering streamlined procedures for claims up to £500,000.
  • Patents Court (Chancery): Deals specifically with patent disputes, generally those over £500,000.

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.
  • The County Court handles the majority of civil claims and uses a track allocation system (Small Claims, Fast Track, Multi-Track).
  • The High Court consists of the King's Bench, Chancery, and Family Divisions, handling more complex and high-value cases.
  • Specialist courts within the High Court Divisions (e.g., Commercial Court, TCC, IPEC) deal with specific types of complex litigation.
  • 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
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