Locations
From 3 February 2014, the monetary jurisdictions of the civil courts will be increased following the commencement of certain provisions of the Courts and Civil Law Act, 2013. The monetary jurisdiction of the courts has remained unchanged since the coming into force of the Courts Act, 1991 and the proposed changes were brought about to ensure that the thresholds were broadly in line with inflation. In that regard, the increases are significant:
- The monetary limit of the District Court will increase from €6,384 to €15,000
- The monetary limit of the Circuit Court will increase from €38,092 to €75,000 except for personal injury actions which will be limited to €60,000
The measures will only effect the civil jurisdiction of the courts and will result in a considerable portion of litigation currently conducted in the Circuit Court, being dealt with at District Court level and a portion of litigation currently conducted in the High Court, being dealt with at Circuit Court level. The burden on the higher courts will also be eased with a reduction in the number of cases taken in the High Court and accordingly in the number of appeals that will be required to be dealt with by the Supreme Court or the new Court of Appeal. In time the changes are likely to improve the overall efficiency of the courts system. The increased accessibility of the lower courts will result in a reduction in legal costs and more expedient results for litigants. This will be particularly beneficial in debt collection matters where the amounts sought to be recovered are relatively small. Among the biggest beneficiaries of the new legislation are lending institutions acting against defaulting borrowers and insolvency practitioners acting against company debtors. If you have any queries in relation to this e alert please do not hesitate to contact: Mark Woodcock - Partner and Head of Insolvency and Restructuring Frances Flynn - Solicitor, Insolvency and Restructuring