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disputes

How much does it cost to apply to the Disputes Tribunal?

Key Takeaway

Applying to the New Zealand Disputes Tribunal involves a specific application fee, currently $45 for claims under $20,000 or $90 for claims between $20,000 and $30,000. The Tribunal resolves civil disputes up to $30,000 (or $50,000 by agreement) through an informal process led by a referee, aiming for quick and cost-effective resolution without lawyers.

The Disputes Tribunal in New Zealand provides an informal and accessible avenue for resolving civil disputes without the need for lawyers. This article outlines the costs associated with applying to the Tribunal, its jurisdiction, the application process, and what individuals can typically expect.

Jurisdiction of the Disputes Tribunal

The Disputes Tribunal's jurisdiction (the extent of its authority) covers most civil disputes involving goods, services, or property [Source: Disputes Tribunals Act 1988, s 10]. It is designed for resolving disagreements between individuals or between an individual and a business.

Monetary Limits

For most claims, the Disputes Tribunal can hear and determine disputes where the amount of the claim does not exceed $30,000 [Source: Disputes Tribunals Act 1988, s 10(1)(a)]. However, if both parties agree in writing, the Tribunal can hear claims up to $50,000 [Source: Disputes Tribunals Act 1988, s 10(1)(b)]. If a claim exceeds these limits, the applicant must abandon the excess amount to have the claim heard by the Tribunal [Source: Disputes Tribunals Act 1988, s 10(3)].

Types of Disputes Covered

The Tribunal can address disputes related to:

  • Faulty goods or services.
  • Damage to property.
  • Unpaid debts (up to the monetary limit).
  • Breaches of contract.

Exclusions

Certain types of disputes fall outside the Tribunal's jurisdiction. These include, but are not limited to, employment disputes (which are handled by the Employment Relations Authority), relationship property disputes, and certain complex land disputes [Source: Disputes Tribunals Act 1988, s 11].

Cost of Applying to the Disputes Tribunal

The primary cost associated with applying to the Disputes Tribunal is the application fee. The fees are set out in regulations under the Disputes Tribunals Act 1988.

Application Fees

The fee payable for an application to the Disputes Tribunal is dependent on the amount of the claim:

  • For claims of less than $20,000, the fee is $45.00 [Source: Disputes Tribunals Fees Regulations 1990, Schedule, item 1(a)].
  • For claims of $20,000 or more (up to $30,000), the fee is $90.00 [Source: Disputes Tribunals Fees Regulations 1990, Schedule, item 1(b)].

These fees must be paid at the time the application is lodged [Source: Disputes Tribunals Act 1988, s 33(1)].

Fee Waivers (Remission)

Individuals who are unable to pay the application fee without incurring hardship may apply for a remission of the fee [Source: Disputes Tribunals Act 1988, s 33(2); Disputes Tribunals Fees Regulations 1990, reg 3]. The Registrar (an officer responsible for administrative duties in the Tribunal) has the discretion to waive or reduce the fee if satisfied that payment would cause undue hardship [Source: Disputes Tribunals Act 1988, s 33(3)].

The Application Process

To initiate a claim, an applicant (the person making the claim) must complete an application form, which can be done online or in person at a District Court [Source: Disputes Tribunals Act 1988, s 27].

Information Required

The application form typically requires the following details:

  • The full name and contact details of the applicant and the respondent (the person or entity against whom the claim is made).
  • A clear and concise description of the dispute.
  • The specific amount of money or other remedy being claimed.
  • Copies of any relevant documents, such as contracts, invoices, or correspondence.

Service of Application

Once lodged and the fee paid (or remitted), the Tribunal staff will arrange for a copy of the application to be served (officially delivered) on the respondent [Source: Disputes Tribunals Act 1988, s 29]. The respondent is then given an opportunity to respond to the claim.

What to Expect at a Hearing

Disputes Tribunal hearings are designed to be informal, and legal representation by a lawyer is generally not permitted [Source: Disputes Tribunals Act 1988, s 38].

The Referee

Each hearing is conducted by a referee (an independent adjudicator appointed to hear and decide cases), who is responsible for ensuring both parties have an opportunity to present their side of the story and any supporting evidence [Source: Disputes Tribunals Act 1988, s 22, s 41]. The referee's role is to help the parties reach an agreement if possible, or to make a decision if agreement cannot be reached [Source: Disputes Tribunals Act 1988, s 18].

Evidence and Witnesses

Parties can bring any relevant documents, photos, or other evidence to support their claim or defence. They may also bring witnesses, but it is advisable to inform the Tribunal beforehand [Source: Disputes Tribunals Act 1988, s 42]. The referee will listen to all evidence and statements.

Orders and Enforcement

If the referee makes a decision, it will be in the form of an order, which could include an order for one party to pay money to another, perform work, or return goods [Source: Disputes Tribunals Act 1988, s 19]. These orders are legally binding and can be enforced through the District Court if not complied with [Source: Disputes Tribunals Act 1988, s 56].

Review of Decisions

A party dissatisfied with a decision may apply to the District Court for a review, but only on limited grounds, such as a breach of natural justice or a lack of jurisdiction [Source: Disputes Tribunals Act 1988, s 50].

When to Seek Independent Legal Advice

Individuals involved in a dispute before the Disputes Tribunal, or considering making an application, may find it beneficial to understand their legal position. While lawyers cannot represent parties in the Tribunal, obtaining independent legal advice before or after the hearing can be valuable for understanding legal rights, preparing a strong case, or understanding the implications of a Tribunal order. Individuals can consult with legal professionals or seek assistance from Community Law Centres for free advice regarding their specific circumstances. [https://communitylaw.org.nz/]

Key Resources