Cheaper Justice - Disputes Tribunal Jurisdiction Doubles

This change will make it more financially viable to pursue claims up to that amount.  Previously, the Disputes Tribunal could not consider claims above $30,000.  Anything above that needed to be dealt with in the District Court at a minimum, which has a more complicated procedure than the Disputes Tribunal making it more difficult for parties to represent themselves and often necessitating the involvement of a lawyer throughout the process.  The legal fees involved with bringing a claim at this value through the procedures of the District Court often means it is not financially worth it.

The legal fees involved with a Disputes Tribunal claim are generally lower than in a court proceeding.  Lawyers are not permitted to be appear at Disputes Tribunal hearings (except in some limited circumstances) and the procedures in the Disputes Tribunal are much more straightforward than a court proceeding.

In the new year, claims up to $60,000 will be able to be brought in the Disputes Tribunal.  You can bring a claim to the Disputes Tribunal if you have a dispute based on a contract or contract-like arrangement with somebody, or a claim in relation to the damage or loss of any property. The matter must be in dispute.  The Tribunal cannot be used for debt recovery where the sum owing is not disputed.  

If you have a claim above $60,000, you can choose to limit it to $60,000 so it fits within the Disputes Tribunal’s jurisdiction. The Disputes Tribunal’s jurisdiction does not limit any interest awarded under the Interest on Money Claims Act 2016 but does limit interest awarded that is owed under a contract or agreement.  

We can provide advice in relation to any potential claim you may have, and can assist you by preparing your claim for filing in the Disputes Tribunal.  We can also provide support in the background prior to the Disputes Tribunal hearing.

We can also provide advice in relation to defending a claim someone else brings against you, including whether you may have a counterclaim against them.

You can find more information about the Disputes Tribunal here: https://www.disputestribunal.govt.nz/.

Disclaimer

The above information is of a general nature only.  The information in this article does in no way constitute legal advice and all readers should contact a law firm for advice relating to their specific circumstances.