The Process of the Small Claims Division within the Local Court
Have you ever had a small amount owed and cannot afford to use a lawyer.
Within the Local Court system in NSW, a Small Claims Division exists which allows individuals to bring claims of up to $20,000 before the Local Court.
To start a court action requires the person claiming to file with the court a Statement of Claim setting out the claim.
What to include in a Statement of Claim Form for Debt Recovery
A statement of claim (Form 3B) must be completed and contain of the following information:
The name and address of the plaintiff/s and defendant/s.
The type of claim being made.
Setting the basis of any claim made with relevant dates and a brief description of the type of claim.
The Process of making a claim and court process in summary:
A statement of claim must be filed to the Local Court. The Statement of Claim may be mailed to the Local Court or delivered personally. The cost of filing a Statement of Claim is $149.00 as of 1 July 2022 or $298.00 for a corporation.
The Statement of Claim must be served on the person you are suing (‘the defendant”)
The Defendant will then respond and decide whether they pay the debt or file a Defence or Cross Claim. In certain situations, the Defendant may not respond to the Statement of Claim which will then give the Applicant the right to apply for a default judgement after 28 days.
If the Defendant files a defence to a claim, the parties will be required to attend a court procedural date known as a pre-trial review, unless they reach an agreement between themselves. At the pretrial review the court will make inquiries about the matter and make some court orders that it deems are appropriate.
In the event that the parties are unable to reach an agreement, the parties will need to file their evidence in support of the claim or disputing the claim in full or partially, and then present their case at court.
Generally, as it is a small claims matter, each side cannot ask the other side any questions, but you are able to indicate to the court why you the claim should succeed or fail and the court will then make a decision. That decision may not be made on that day, and the court often reserves its decision to a later date.
At Culleton Lawyers, we have experienced practitioners who have assisted clients over a number of years. To start a conversation, call 02 4243 7855 or email reception@culletonlawyers.com.au.