If a business has wronged you — perhaps it owes you money, sold you a faulty product, or acted negligently — you may have the right to take legal action. Suing a business in the UK can sound intimidating, especially if you have never been involved in a legal process before. However, with the right approach and understanding of how the system works, you can make informed decisions and protect your rights.
This guide explains, in simple terms, how to sue a business in the UK, the types of claims you can bring, what to do before going to court, how much it may cost, and the key steps in the legal process.
When Can You Sue a Business?
There are many situations where you may have a valid claim against a business or corporation. Common reasons include:
- Unpaid debts or invoices – when a company refuses to pay for goods or services.
- Faulty goods or poor services – under the Consumer Rights Act 2015, you are entitled to products that are of satisfactory quality, fit for purpose, and as described.
- Negligence – if a company’s carelessness has caused you harm or loss, such as injury, damage to property, or financial loss.
- Employment-related issues – such as unfair dismissal, unpaid wages, or workplace discrimination.
- Defamation or reputational harm – if a company has made false statements damaging your reputation.
- Property or nuisance disputes – where a company’s actions interfere with your enjoyment of your property.
The type of claim you make will determine the court process and what kind of compensation (known as damages) you can seek.
Try to Resolve the Matter First
Before starting a legal claim, it’s important to try resolving the issue out of court. Courts expect you to attempt Alternative Dispute Resolution (ADR) before suing.
Here are a few steps you can take:
- Contact the business directly: Write or email the company to explain the problem, include relevant evidence, and clearly state what outcome you expect.
- Send a “letter before action”: This formal letter warns that you intend to take legal action if the issue is not resolved within a certain time.
- Use mediation: A neutral third party helps both sides reach an agreement. Mediation is quicker, cheaper, and less stressful than court proceedings.
If these steps fail, you can proceed to make a claim in court.
Gather Evidence to Support Your Claim
When preparing to sue a business, evidence is your strongest tool. You’ll need to show clearly what happened, why the business is responsible, and how much you have lost as a result.
Useful evidence includes:
- Receipts, invoices, and contracts
- Photos or videos (for example, showing damage or injury)
- Emails, letters, or messages exchanged with the company
- Witness statements
- Expert reports (for example, medical or technical reports)
- Bank statements showing payments made or losses suffered
Keep your evidence organised in chronological order and make copies of everything you plan to submit.
Check If Suing Is Worth It
Before starting a claim, ask yourself a few important questions:
- Can the business afford to pay? If the company is struggling financially or has gone into liquidation, you may not recover your money even if you win.
- How much will it cost? Court fees depend on the value of your claim. For example, claims under £300 cost £25 to file online, while claims over £200,000 can cost £10,000.
- How strong is your case? You must be able to show that the business is legally responsible and that your loss or injury resulted from its actions or negligence.
Sometimes, the emotional or financial cost of going to court may outweigh the possible benefit of winning.
Decide Who to Sue
It’s essential to identify the correct legal entity responsible. Check if the business is:
- A limited company (you must sue the company, not individual staff members).
- A sole trader (you can sue the owner personally).
- A partnership (you can sue the partnership itself or the individual partners).
You can find company details on the Companies House website, including their registered address, which you’ll need for serving court papers.
How to Start a Legal Claim
The process for suing a business in England and Wales usually begins with filing a county court claim (sometimes called a small claim if under £10,000).
Step 1: File Your Claim
You can start your claim online using the Money Claim Online (MCOL) service on GOV.UK, or by post using form N1. You will need to:
- Describe what happened and why the business owes you compensation.
- State the amount you are claiming.
- Attach evidence (or indicate it will follow).
- Pay the court fee.
Step 2: Serve the Claim
Once your claim is accepted, the court will send it to the business (the defendant). The company must respond within 14 days — either to admit the claim, negotiate, or file a defence.
Step 3: The Business Responds
- If the company admits liability, the court can order payment.
- If it disputes the claim, the case will proceed to a hearing.
- If it fails to respond in time, you can ask for a default judgment, meaning the court decides in your favour automatically.
Step 4: Attend the Hearing (if needed)
At the hearing, both sides present their evidence and arguments. A judge then makes a decision based on the facts and the law.
Court Tracks and Claim Types
Claims in the county court are allocated to one of three “tracks”, depending on the claim’s size and complexity:
| Track | Claim Value | Description |
| Small Claims Track | Up to £10,000 | Simple cases – you can represent yourself without a lawyer. |
| Fast Track | £10,000 to £25,000 | Moderately complex cases, usually completed in one day. |
| Multi-Track | Over £25,000 | Complex cases, often involving lawyers and expert evidence. |
If you win your case, you may be able to recover court fees and some of your costs from the business. However, if you lose, you might have to pay some of the other side’s costs.
Common Types of Claims Against Businesses
Here are some examples of how you might use the process above in practice:
Consumer Disputes
If a company sold you a faulty product or poor service, you can claim a refund, repair, or compensation under the Consumer Rights Act 2015.
Negligence
You may sue if a company’s carelessness caused injury or damage — for instance, slipping in a shop due to a wet floor with no warning sign.
Unpaid Invoices
Freelancers and small businesses can sue for unpaid work. Keep written contracts, invoices, and communication as evidence.
Employment Issues
Claims such as unfair dismissal or discrimination go to an employment tribunal, not the county court.
Defamation
If a company made false statements that harmed your reputation, you can sue for damages — but you must act quickly, as the time limit is just one year.
Costs of Suing a Business
Legal costs vary depending on:
- The value of your claim (higher claims have higher court fees).
- Whether you hire a solicitor.
- Any expert witnesses you may need.
Typical filing fees include:
| Claim Amount | Online Fee | Paper Form Fee |
| Up to £300 | £25 | £35 |
| £300–£500 | £35 | £50 |
| £500–£1,000 | £60 | £70 |
| £1,000–£10,000 | £70–£455 | £80–£495 |
| £10,000–£200,000 | 5% of claim | 5% of claim |
| Over £200,000 | £10,000 | £10,000 |
If you win, the judge can order the business to repay your court fee and possibly other costs. However, if you lose, you might have to cover some of the other party’s expenses.
Time Limits for Suing
Each type of claim has a legal time limit, known as a limitation period:
| Type of Claim | Time Limit |
| Personal injury | 3 years from date of injury or diagnosis |
| Defamation | 1 year from date of statement |
| Breach of contract | 6 years from the breach |
| Property damage | 6 years from the incident |
| Negligence (without personal injury) | 6 years from the loss or damage |
If you miss these deadlines, your claim might be dismissed — so act quickly.
After the Court’s Decision
If the judge rules in your favour, the business must comply with the court’s order — for example, pay compensation or fix the issue. If it doesn’t, you can take enforcement action, such as:
- Hiring bailiffs to recover goods or money.
- Freezing the company’s bank account.
- Applying for a charging order over the company’s property.
If you lose your case, you may be able to appeal, but only on specific legal grounds.
Getting Legal Advice
Although small claims can be handled without a lawyer, more complex disputes often benefit from professional help. A solicitor can:
- Review the strength of your case.
- Help gather and present evidence.
- Handle correspondence with the business.
- Represent you in court.
You can find a qualified solicitor through the Law Society of England and Wales website or get free guidance from Citizens Advice.
Conclusion
Suing a business can seem overwhelming, but understanding the process makes it far more manageable. Start by trying to resolve the matter out of court, gather solid evidence, and calculate the amount you’re owed. If that fails, follow the proper court procedure through the county court or online services.
Legal action should always be a last resort — but if you’ve suffered genuine loss or harm, the law is there to protect your rights and ensure fairness.