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disputes

What happens at a Disputes Tribunal hearing?

Key Takeaway

Disputes Tribunal hearings in New Zealand are informal proceedings designed to resolve civil disputes efficiently. A referee, who is not a lawyer, facilitates discussion, considers evidence, and makes a binding decision. The process generally does not involve legal representation, focusing on reconciliation and fair resolution within specified monetary limits. Application fees apply, and the Tribunal may order payment or work completion.

Understanding a Disputes Tribunal Hearing in New Zealand

Disputes Tribunals in New Zealand offer an accessible and informal way to resolve civil disputes without the complexity and higher costs typically associated with court proceedings. A referee (a neutral third-party appointed to hear and decide disputes) presides over the hearing, aiming to help parties reach an agreement or, failing that, making a binding decision.

Jurisdiction and Scope

The Disputes Tribunal has the authority to hear a wide range of civil disputes [Source: Disputes Tribunals Act 1988, s 10]. Common types of disputes include:

  • Breaches of contract, such as issues with goods or services purchased [Source: Disputes Tribunals Act 1988, s 10(1)(a)].
  • Property damage or loss [Source: Disputes Tribunals Act 1988, s 10(1)(c)].
  • Disputes over debts owed [Source: Disputes Tribunals Act 1988, s 10(1)(b)].
  • Unpaid rent or damage to rental properties (for disputes outside the Tenancy Tribunal's exclusive jurisdiction) [Source: Disputes Tribunals Act 1988, s 10(1)(d)].

Monetary Limits

The Tribunal can hear claims up to a certain monetary limit. For claims where a party agrees in writing, the Tribunal can hear claims up to $30,000. If there is no such agreement, the limit is $15,000 [Source: Disputes Tribunals Act 1988, s 13]. Claims exceeding these limits must generally be heard in higher courts, unless the claimant agrees to abandon the excess amount [Source: Disputes Tribunals Act 1988, s 13(3)].

Exclusions

Certain matters fall outside the Tribunal's jurisdiction. These include:

  • Disputes specifically designated for other tribunals or courts, such as employment disputes (Employment Relations Authority) or most residential tenancy disputes (Tenancy Tribunal) [Source: Disputes Tribunals Act 1988, s 11(1)].
  • Disputes concerning land ownership or interests in land, except for certain cases of damage to land or specific agreements [Source: Disputes Tribunals Act 1988, s 12].
  • Some family law matters, such as custody or divorce proceedings [Source: Disputes Tribunals Act 1988, s 11(1)(b)].

The Hearing Process

Before the Hearing

Once an application is filed and a fee paid, the other party (the respondent) is given an opportunity to respond. Both parties are encouraged to share all relevant information and evidence with each other before the hearing to promote transparency and facilitate resolution [Source: Disputes Tribunals Act 1988, s 20(3)].

At the Hearing

Disputes Tribunal hearings are designed to be informal. The key aspects include:

  • Role of the Referee: The referee's primary duty is to help the parties to negotiate and reach an agreed settlement of the dispute. If a settlement cannot be reached, the referee will hear the evidence and make a decision [Source: Disputes Tribunals Act 1988, s 18]. The referee is not a lawyer but has legal training and experience in resolving disputes [Source: Disputes Tribunals Act 1988, s 5(2)].
  • Informal Nature: Hearings are generally held in private, and the formal rules of evidence that apply in courts do not apply in a Disputes Tribunal [Source: Disputes Tribunals Act 1988, s 20(1), s 21]. This allows parties to present their case in their own words.
  • No Lawyers: Parties are generally not permitted to be represented by a lawyer or agent unless the Tribunal grants permission under specific circumstances, such as when one party would be at a significant disadvantage [Source: Disputes Tribunals Act 1988, s 19].
  • Presentation of Evidence and Argument: Parties will present their version of events, supported by any relevant documents, photos, or other evidence. The referee may ask questions and encourage discussion between the parties to clarify facts and explore solutions [Source: Disputes Tribunals Act 1988, s 20(2)]. Witnesses may also be called to provide information [Source: Disputes Tribunals Act 1988, s 22].
  • Focus on Settlement: The referee will often guide parties towards a mutually agreeable resolution. If a settlement is reached, it will be recorded as a Tribunal order [Source: Disputes Tribunals Act 1988, s 18(2)].
  • Decision-Making: If an agreement cannot be reached, the referee will make a decision based on the information presented. This decision will be issued as an order, which might require a party to pay money, return goods, or perform certain work [Source: Disputes Tribunals Act 1988, s 33].
  • Absence of a Party: If a party fails to attend a hearing without reasonable excuse, the Tribunal may proceed with the hearing in their absence or dismiss the claim, or take any other action it considers just [Source: Disputes Tribunals Act 1988, s 25].

Costs of a Hearing

Applicants are required to pay a fee when lodging a claim with the Disputes Tribunal. The specific fees are set out in regulations. For example, as of current regulations, the fee for a claim up to $2,000 is $45, and for claims between $2,001 and $15,000 (or $30,000 if agreed) is $90 [Source: Disputes Tribunals (Fees) Regulations 1989, Schedule].

Beyond the application fee, parties are generally responsible for their own costs, such as travel expenses. However, the Tribunal has the discretion to order one party to contribute towards the other party's costs, though this is usually limited to expenses like travel or witness fees [Source: Disputes Tribunals Act 1988, s 43].

What to Expect from a Decision

The orders made by a Disputes Tribunal are final and binding on the parties involved [Source: Disputes Tribunals Act 1988, s 41]. This means that once a decision is made, parties must comply with it. If a party does not comply with an order, the other party can apply to a District Court to have the order enforced [Source: Disputes Tribunals Act 1988, s 56]. Enforcement means the court can take steps to compel compliance, such as issuing a warrant to seize goods or deducting money from wages.

When to Seek Independent Legal Advice

While lawyers generally do not represent parties at a Disputes Tribunal hearing, understanding the law and your rights can be complex. It is always advisable for individuals to seek independent legal advice if they are unsure about their legal position, the strength of their claim or defence, or how best to prepare for a hearing. This can be obtained from legal professionals, or free advice may be available through organisations like Community Law Centres.

Key Resources