Changes in Minor Civil Claims

Minor Civil Claims in the Magistrates Court can no longer be considered “small”, with significant increases to the jurisdiction. The changes are summarised as follows:

Minor/Small Claims is now increased to a new limit of $25,000.900

Minor Statutory Claims – Limit for actions under the Retail & Commercial Leases Act 1995 up to $25,000.

Legal Representation – In running a Minor Civil Claim, generally no in-court legal representation is allowed. Instead, the Court requires each party to present their own case and reach quick resolution without necessarily following the strict evidential and procedural rules governing larger claims.

Similarly, more of those larger, and arguably more complex claims will now be determined by the Court without the assistance of in-Court legal representation.

Costs – As under current system but further changes also.
The draft Magistrates Court Rules also indicate that costs under the new system will be determined as a percentage of the judgment amount, rather than a prescribed dollar figure.

In consideration of the increased likelihood of complex claims in the jurisdiction, new cost items (mediation/arbitration and trial plans) have also been allowed.

Impact – While legal assistance will still be essential to ensure preparation of an effective claim or defence, the increase to the jurisdiction further limits and makes unlikely the recovery of costs for either party (even with proposed changes to the costs scale).
Assessment of liability risks and potential quantum of claims will become even more important to ensure that you aren’t caught out by significant unrecoverable costs of litigation.

An increase in commercial resolutions will inevitably result.

For further information please contact us at this link Radin Legal or by telephone on 08 8522 8000