The Disputes Tribunal (the Tribunal) offers a relatively informal and accessible way to resolve disputes with claims of up to $30,000. If a claim exceeds this amount, it will need to be pursued in the District Court.
The process typically involves these steps:
- Filing a Claim: the person initiating the dispute (the claimant) files a claim (called the statement of claim) with the Tribunal, outlining the nature of the dispute and the desired outcome. There is a small filing fee, which varies depending on the claim amount (see below).
- Notification: The Tribunal will then notify the other party (the respondent) of the claim and provide them with an opportunity to respond (called a statement of defence). The defendant may raise a counterclaim against the plaintiff as well.
- Mediation may be offered: Before the hearing, the Tribunal may offer mediation services in which a neutral third party will help both sides negotiate a resolution.
- Hearing: if mediation is unsuccessful or not chosen, a hearing will be scheduled. This is where both parties present their case to a referee (the decision maker in the Tribunal). Lawyers are not allowed to represent you in the hearing itself. This keeps the process informal and accessible.
- Decision: the referee will consider the evidence presented and make a decision, which is legally binding.
What to do After the Decision?
While Tribunal orders are legally binding, the Tribunal itself cannot enforce its decision. The Tribunal’s decisions can be difficult to enforce. If the unsuccessful party breaches the orders of the Tribunal, the other party will need to seek to enforce the Tribunals decision in the District Court. If either happy is unhappy with the decision, they can apply for a rehearing in the Disputes Tribunal, or they may appeal the decision to the District Court.
Advantages and Disadvantages
Making a claim in the Disputes Tribunal is a faster, cheaper, and less formal alternative to the District or High Courts. The Disputes Tribunal normally has hearings within 6 weeks of a dispute being filed, a much shorter timeline than if you go through the court system.
Depending on the cost being sought, the fees to file in the Disputes Tribunal vary:
- Claim under $2,000 = $59
- Claim between $2,000 – $4,999 = $117
- Claim between $5,000 – $30,000 = $234
Costs are only awarded in rare cases. Unfortunately, these filing fees cannot be reclaimed, even if you win the dispute. But this has the benefit of reducing the risk of adverse costs being awarded against you if you are unsuccessful in your claim (unlike filing in the District of High Court, where costs normally are awarded to the successful party).
The referee can make the following legally binding orders:
- A party must pay someone else a certain amount of money;
- A party does not have to pay someone else money;
- work must be done (for example, repair work to a building);
- an agreement must be changed or cancelled;
- someone must hand over some goods to someone else,
Involvement of Lawyers
The role of a lawyer in the Disputes Tribunal is quite different from that in a court setting. While lawyers cannot represent you during the Tribunal hearing, they can provide valuable assistance beforehand.
Although a lawyer cannot represent you in the hearing, a lawyer can assist you in other ways.
Lawyers can still provide you with advice on your rights and obligations before you go to the Tribunal and your prospects of success. A lawyer can also help you organise your evidence, prepare submissions, and explain the relevant law so you are prepared to argue your own case at the hearing. If the referee disagrees with your claim, a lawyer can advise you on whether or not you should appeal the decision.
What Does This Mean For You
The Disputes Tribunal provides an affordable and quick service for resolving many types of disputes. While lawyers are not present at the hearing itself, seeking legal advice beforehand can be extremely beneficial in preparing your case and understanding your rights.
By being well-prepared and understanding the process, you can increase your chances of a positive outcome.
If you want to talk to us about an issue you think could be resolved in the Disputes Tribunal, you can contact us for a free initial consultation.