Yes I know standard response is “speak to a lawyer” but for the sum involved here, it’s barely worth it.

Details of the claim probably not hugely relevant, but dispute with neighbours over a common repair that we think was not justified and was not approved by us to proceed. Claim is against myself and a number of other neighbours, we are adamant we are in the right and have had some quick informal legal advice to that effect, but are concerned that just being in the right doesn’t necessarily mean we will win, so I’m trying to work out if it’s worth the hassle of going to court and risking it, or just cutting our losses now. We have a claim against us for small claims court but there are some parts are not clear, specifically regarding expenses and impact of going to court and losing.

1. For expenses, these can be awarded against us but I am trying to understand how expenses might differ between settling now or going to court. The wording on the court guidance does not make it clear, if we admit the claim and settle it before going to court, does this mean the expenses limit doesn’t apply? Or is it only if we were to ignore the claim and not provide a response that the expenses limit wouldn’t apply.

There are exceptions to the normal limits on awarding expenses where:
 The defender has not stated a defence
 The defender does not proceed with his defence

2. Is there any impact on my records of any kind (credit rating etc.) of going to court? The court documents talk about how settling now “avoids a court order against me”, but I’m not sure what that actually means in practical terms? Is it a bad thing, or is a small claims order against you not really something to worry about? I’ve tried googling on this one to no avail, most results seem oriented towards English legal system.

In Edinburgh there is ( or used to be) a CAB unit attached to the court to give advice. A good place to start.

I think the costs thing is if you let it go to court but do not offer a defense – ie waste everyones time.

Expenses in fast track courts are minimal to stop folk using lawyers.

Your credit rating would only be affected if you lost at court and failed to pay any award.

Re costs, as TJ said

. You should be aware that if you dispute the claim then later change your mind and settle the case you could end up paying huge expenses because the court may take the view that you should have settled it at the beginning of the case.

https://www.citizensadvice.org.uk/scotland/law-and-courts/legal-system-s/taking-legal-action-s/taking-someone-to-court-using-simple-procedure-s/simple-procedure/what-happens-if-youre-taken-to-court-for-money-you-owe/