Civil claims can cover a wide range of matters. The most common types of civil claims are claims for sums of money (such as for loans or under contracts) or claims for damages (such as for personal injuries following an accident or repair costs to a car following a road accident).
Some types of civil claims are dealt with by special courts or tribunal such as residential tenancies, unfair dismissals, bankruptcy, copyright and planning problems. This section does not deal with the procedure in these special courts and tribunals.
In this section, unless otherwise stated, the procedure for making a claim is that which applies in the Magistrates Court (Minor Claims Division). For additional information about minor civil claims, see : DEBT and MOTOR VEHICLE ACCIDENTS.
IN WHICH COURT IS A CIVIL CLAIM STARTED ?
The amount of money or damages being claimed usually determines the Court in which a claim should be started. Acts of parliament and court rules set the monetary limits for the types of claims which courts can deal with. These limits are:
- Up to $6000 Magistrates Court (Minor Claims Division)
- $6001 - $40 000 Magistrates Court (General Division)
- Over $40 000 District Court
There are some exceptions. Claims for up to $80 000 can be made in the Magistrates Court (General Division) for:
- compensation, damage or loss as a result of a car accident
- real property title disputes
- property disputes between domestic partners
Claims can also be made in the Supreme Court, but there are cost penalties which can apply if the amount of the judgment awarded by the Supreme Court falls below a certain amount. The amount depends on the type of claim. In a personal injuries claim at least $150 000 must be recovered to avoid the cost penalties.
See also STATE COURTS
The procedures that are followed in the District Court and the Supreme Court are very nearly the same as each other. Whilst there are many similarities with the procedural steps in all of the Courts, generally the procedures have been simplified in the Magistrates Court.
ENFORCEABLE PAYMENT AGREEMENTS
Sometimes as a result of sending a Notice of Intended Claim or following letters of demand it becomes clear that there is no real dispute that a sum of money is owing . If an agreement can be reached to repay by instalments there is now an option for the parties to enter into an Enforceable Payment Agreement (EPA).
The advantage to the creditor is that if the debtor falls behind in making two payments a claim can then be issued for the outstanding balance, but the debtor will not be allowed to file a defence to the claim. Instead the creditor will be able to obtain a judgment straight away which can then be enforced like any other judgment.
The advantage to the debtor is that if they abide by the agreement they do not get an adverse credit rating and they do not have to pay the legal costs associated with a claim being issued through the Magistrate's Court.