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If you are taking someone to court in New South Wales because of a contractual dispute, there are several factors to keep in mind. Firstly, going to court can cost a lot of money. As a general rule, and where appropriate, you should resolve your dispute through alternative dispute resolution. This could include negotiations or mediation. Some courts may require the parties to demonstrate they have taken measures to settle the dispute before commencing formal proceedings, or they may order the parties to do so before continuing to hear the matter. For this reason, we recommend you exhaust all options and attempts to resolve the dispute outside of court.
If taking someone to court is still your best option, knowing which court is the most applicable in your circumstances is important. Depending on the monetary value of the dispute, the three most common courts are the:
- Local Court;
- District Court; and
- Supreme Court of NSW.
Some types of claims may be suited to the NSW Civil and Administrative Tribunal (NCAT) or the Federal Court of Australia but most civil claims will be suited to the three other main courts.
Local Court
The Local Court hears the largest volume of civil cases in NSW. There are local courts located throughout NSW with each having two divisions, as set out below:
- Small Claims Division: small claims deals with claims for amounts under $10,000; and
- the General Division: can hear claims up to $100,000 (except for damages resulting from personal injury or death, where the limit is $60,000). In certain circumstances, the General Division can decide on cases for a money claim of up to 20% more than the relevant limit.
To commence proceedings, you must file an originating process called a Statement of Claim. The court provides standard form Statements of Claim, demonstrating the general form required. You can confirm the filing fees of each division via the court’s website. It is important to note that the filing fee differs in each division and for individuals and companies. Once you have filed the Statement of Claim with the court, you must ensure to serve this on the other party to the proceedings. The rules on service differ slightly depending on whether the other party is an individual or a company.
District Court
The District Court deals with larger amounts of money than the Local Court. Matters under general law (such as commercial disputes) can be heard in this court if they involve amounts up to $750,000.
In particular circumstances, there is no monetary limit on the disputes the District Court can hear. These include claims for damages arising from workplace injuries. If there is consent or no objection, the Court can also increase its jurisdiction from $750,000 to $1,125,000.
To start a case in the District Court, you will also need to file an originating process, similar to the Local Court, in the form of a Statement of Claim. The District Court provides its own fees for filing a Statement of Claim on its website. You will also need to ensure the sealed Statement of Claim is served on the other party, as you do in the Local Court.
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Supreme Court
The Supreme Court is the highest court in NSW with unlimited civil jurisdiction. It typically deals with disputes with a monetary value of over $750,000. The Supreme Court can hear all civil matters and appeals from the lower courts of NSW and certain bodies such as the District Court and the Dust Diseases Tribunal. The Supreme Court usually hears cases in Sydney, but can have trials in regional areas if necessary. Appeals from the Supreme Court and the District Court go to the Court of Appeal.
Running a case in the Supreme Court can be very expensive. Therefore, if one of the other courts has the power to hear your particular case, it is prudent to commence proceedings in that court. If the sum of money involved is larger than the District Court limit ($750,000), then the Supreme Court is the suitable forum to hear your dispute. You commence proceedings by filing an originating process, statement of claim or summons.
Key Takeaways
It is important to be aware of the correct court for your claim and file accordingly. This will depend on the nature of your claim and the amount of money it deals with.
If you need help taking someone to court, our experienced litigation lawyers can assist as part of our LegalVision membership. For a low monthly fee, you will have unlimited access to lawyers to answer your questions and draft and review your documents. Call us today on 1300 544 755 or visit our membership page.
Frequently Asked Questions
The Small Claims Division of the Local Court can hear matters with a monetary value of up to $10,000 while the General Division can hear claims of up to $100,000.
The District Court can hear matters under general law (such as commercial disputes) up to $750,000. In some circumstances, there is no monetary limit on the disputes the District Court can hear. These include claims for damages arising from workplace injuries. If there is consent or no objection, the District Court can also increase its jurisdiction from $750,000 to $1,125,000.
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