I've made a claim against a company for £10,000. They have a solicitor representing them in their defence. I can't afford a solicitor and when I started this I was following guidance which stated that for a small claim, no legal costs will be awarded to either side no matter who wins/loses the claim.
They have just made me an offer to settle (for £5000) and the offer letter states that if I refuse it I will be seen as unreasonable and the court will "in all likelihood" make me pay their legal fees.
I thought they were just trying to scare me but then I found this article dated September 2020 that states:
"Exceptions to the Small Claims Costs Rules
Where the parties consented to a claim being allocated to the small claims track, although its financial value exceeded £5000, the rules on costs are different. The judge will be able to make the same order for costs as if the claim had been dealt with on the fast track (broadly speaking this covers claims with a financial value of between £5000 and £15,000). While these costs are still limited they are substantially more than could be awarded on the small claims track."
Does this mean that I could in fact have to pay for their solicitor? They are being represented by one of the partners in the legal firm they are using. This could ruin me financially as I don't have much in savings.
I did consult a solicitor a year ago when this issue arose, and was told I have a good case, but his fees mounted up so quickly that I had to stop using him. I haven't included those fees in my claim as I wanted to keep it under £10,000 so it would be a small claim, for that very reason.
I'd be grateful for any advice or reassurance if anyone knows about this, or can point me to the relevant rules. I've looked at the Civil Procedure Rules but can't find anything to confirm what it says in the article.