Liquidated vs Unliquidated Claims in Northern Ireland Small Claims Court

At the top of your Form 125 — the Notice of Application for a Small Claim — one word is printed alongside the claim number: either "Liquidated" or "Unliquidated." It looks like a technical label, easy to ignore. But this classification affects how the court handles your case if you do not respond, and it changes what a default decree actually looks like.

What Liquidated Means

A liquidated claim is for a specific, fixed amount of money. The applicant knows exactly what they are owed because the figure is defined by a contract, invoice, or agreement. Common examples:

• An unpaid invoice for goods delivered
• A loan or deposit of a stated amount that was not returned
• A fixed-price service contract that was paid for but not performed
• Rent arrears at a stated monthly figure

The defining feature is certainty: the sum claimed is an exact number, not an estimate.

What Unliquidated Means

An unliquidated claim is for damages where the amount is not predetermined. The applicant is asking the court to assess and decide how much is owed. Common examples:

• Faulty workmanship on a home renovation (the cost of repair is an estimate)
• Property damage caused by a neighbour (the replacement cost is disputed)
• A defective product where the loss includes consequential costs
• Poor service where the financial impact is not captured by a single invoice

The applicant states their estimated value on Form 125, but the court is not bound by that number. A District Judge decides the actual amount if the case goes to a hearing — or at an assessment hearing if a default decree is entered.

Why It Matters for Defaults

This is where the classification makes a real difference. If the court has not received Form 126A or Form 126B within 21 days of the date it received or issued the application, the applicant may apply for a default decree:

Liquidated claim (Form 127): The Chief Clerk can enter a decree for the exact amount claimed, plus court fees and interest, on the papers without an assessment hearing.

Unliquidated claim (Form 128): The court cannot simply rubber-stamp the applicant's estimated figure. Instead, the Chief Clerk schedules an assessment hearing before the District Judge, who examines the applicant's evidence and decides the actual amount. The hearing determines damages after default; a separate application to set aside the decree is the route to ask the court to reopen liability.

In both cases, an unpaid decree functions as a County Court Judgment (CCJ) and can remain on your credit record for six years. If you pay in full within 30 days of the order date, you can apply for a certificate of satisfaction to have the entry removed.

The County Court Rules Behind It

The small claims procedure in Northern Ireland is governed by Order 26 of the County Court Rules (Northern Ireland) 1981, as substituted by the County Court (Amendment No. 3) Rules (Northern Ireland) 2002 (S.R. 2002 No. 255). This is sometimes informally referred to as the "County Court Rules 2002" because the 2002 amendment rewrote the entire small claims procedure.

Order 26 covers everything from filing an application (Rule 4) through response mechanics (Rules 10–13), default decrees (Rules 14–16), set-aside applications (Rules 19–21), hearing conduct (Rules 30–31), and cost restrictions (Rule 43). The financial limit for the small claims procedure — currently £5,000, raised from £3,000 on 3 October 2022 — is set by the County Courts (Financial Limits) Order (Northern Ireland) 2022.

The distinction between liquidated and unliquidated runs throughout these rules, from the initial application form to the default decree procedure. It is not just a label.

What This Means for Your Response

Whether your claim is liquidated or unliquidated, the 21-day response deadline is the same. The practical difference shows up if you fail to respond:

• On a liquidated claim, a default decree can be entered on the papers for the amount claimed; you may apply to set it aside if you meet the requirements.
• On an unliquidated claim, you at least get an assessment hearing — but you have already lost the ability to dispute liability.

Responding on time keeps both issues (liability and amount) open for argument at the full hearing.

Our Responding to a Small Claim in Northern Ireland guide explains how the liquidated/unliquidated distinction affects each stage of the process, from choosing your response form through to what happens at the hearing.

See more Northern Ireland guides →