Small Claims Court to judge business disputes

Businesses involved in disputes with other businesses will soon be able to use the Small Claims Court.

Up to now the court, which rules on disputes for goods and services bought up to a limit of €2,000, has only been available to consumers.

Announcing the move today Justice Minister Dermot Ahern said he was extending the court's remit to help small businesses affected by the current "difficult economic conditions".

"This Government is conscious that all businesses, but small businesses in particular, have been significantly affected by the very difficult economic situation that this country is facing," Minister Ahern said.

"Businesses, as well as consumers, can find themselves in a position where they have a legitimate claim against another business or vendor in relation to a contract in respect of goods or services purchased."

"The extension of this successful procedure will provide a choice of legal routes to pursue a small claim as the current civil bill system will also remain available. This will allow a business choose whichever route, small claims or civil bill procedure, it considers most economic and appropriate to its circumstances.”

The changes come into effect on January 11.