If you are owed money there are a number of ways of collecting it. Some clients use debt collectors, especially for smaller debts. If legal procedures are required there are two common alternatives - the Disputes Tribunal and the District Court.

DISPUTES TRIBUNAL

The Disputes Tribunal handles claims of up to $7,500 or with the consent of both parties up to $12,000. The limits are under review at present. A ‘dispute’ must exist. For example, if a debtor simply refuses to pay a bill no ‘dispute’ exists. However, if the debtor refuses to pay a bill arguing that the workmanship was shoddy then a dispute exists.

The Disputes Tribunal has several advantages:

• It is cheap. The fees range between $30 and $100 depending on the amount being claimed,
  
• Parties are usually required to represent themselves in the Tribunal and may not have a lawyer present,
  
• Tribunal hearings are private and informal,
  
• Hearing dates are normally readily allocated and hearings may be held by telephone.
  

The Disputes Tribunal can make decisions based on "equity and good conscience", which means strict legal principles may not necessarily be applied. At the hearing the referee will encourage the parties to discuss the dispute and may make suggestions as to settlement. If an agreement is not reached between the parties the referee will make a decision. Referees can order that one person pay money to another person, that work be done, that an agreement be altered or canceled or that the claim be dismissed.

To initiate a claim in the Disputes Tribunal you should contact your nearest District Court or talk to us.

DISTRICT COURT

There are two common procedures in the District Court - summary judgment and ordinary proceedings.

Summary Judgment

The summary judgment procedure may be used where a defendant has no genuine defence to the plaintiff’s claim. Where a summary judgment claim is not defended judgment can usually be obtained within two months, but other cases usually take six to twelve months to get to a hearing. Apart from speed, the summary judgment procedure is often cheaper than ordinary proceedings.

While the summary judgment procedure is ideal for debt collection, it is also available in other situations including lease, contract and commercial disputes. A decision must be made at the outset whether to apply for summary judgment. Once ordinary proceedings are filed summary judgment cannot later be applied for.

It is critical that all relevant information (including documents) are disclosed to us as it has to be incorporated in affidavit form to convince the court that no defence exists. If there is a material dispute of fact the claim will not be decided on the summary basis.

Ordinary Proceedings

In contrast with summary judgment proceedings, evidence is not filed at the commencement. Unsuccessful summary judgment applications proceed as ordinary proceedings.

In defended ordinary proceedings parties are commonly involved in lengthy and expensive document discovery processes and other procedural steps before cases come to a hearing.

FURTHER INFORMATION

Enquiries about any of the above procedures or other litigation services available can be made to the partner you normally deal with or to our litigation department.

f you instruct us on any Court matters it helps us and you if you provide us with:

• A one page summary of the background,
  
• All relevant papers, in date order, and
  
• Names and addresses of possible witnesses.