None of us want to get into disputes, especially when starting up a business. Let’s face it- at that stage you have far more important things to be doing!

However, disputes are a fact of modern life. You can help yourself deal with disputes by taking various, basic steps. First of all, ensure that you have terms and conditions which cover your interaction with customers. These should set out clearly the way in which you will do business, when you expect to be paid, whether interest will be charged and what will happen if there’s a dispute. You should consider whether you want to insist that any disputes are dealt with by the Guernsey courts and, if so, insert an ‘exclusive jurisdiction’ provision which says so.

In any dispute situation, keep careful records of issues raised, with photographic or other appropriate evidence. A detailed paper trail will help you if you do have to go to court to defend your position or pursue a non-payer.

In Guernsey payment claims for up to £10,000 are dealt with in the Magistrate’s Court under the ‘Petty Debts’ procedure. This is a very straightforward procedure and cases can progress to a final hearing very quickly. No lawyers’ costs are recoverable in Petty Debts procedure, which can also mean that you save costs by taking non-payers to court yourself.

The main court in Guernsey is the Royal Court. Cases which proceed in the Royal Court will follow procedural rules issued in 2007 which offer streamlined disposal of claims. The Court has a duty to ensure that cases are dealt with in accordance with what is termed the overriding objective, namely to do justice fairly and swiftly. In practice, this means that the Court takes control of proceedings from an early stage.

The courts will always encourage parties to try to reach a settlement and this is something you should consider at all times. Litigation is expensive, stressful and time-consuming. If you can reach a resolution, even if this involves a compromise, this may be better from your business’ perspective than fighting out a lengthy litigation.