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Hi, welcome to the site. I will help you with your question.
Sadly, it's not possible to recover this type of compensation for having to deal with pointless claims like the one that seems to be made against you. You can only do that in claims worth more than £10,000, and then the recovery cost is limited to £10 p/hour.
Your only options now are: 1) ignore them, 2) continue to engage with them and accept you can't recover your costs or 3) issue a court claim against them for a declaration that you're not liable.
is option 3 something i can do easily?
Yes, pretty easily. You issue a claim form, you have to do it the old fashioned way though, on paper in the county court.
You ask the court to declare the legal position - so you're not asking for money (as you do in most claims) you're asking for it to tell you what the legal position is and whether you owe them money.
You can get the claim form here: http://www.hmcourts-service.gov.uk/HMCSCourtFinder/GetForm.do?court_forms_id=338
Do you want me to explain this a bit more? Or do you think ignoring them is the easiest and better way to go?
If it were me, I would probably just ignore them until they sued me, then I'd defend it.
hi max the link does not work, what is the neme of the form please
It's an N1 Claim Form. Let me try another link for you.
Here you go: http://www.bristollawsociety.com/wp-content/uploads/2012/03/N1_web_0312.pdf
That works - I just checked it for you.