The Disputes Tribunal offers an informal and cost-effective way to resolve small civil disputes in New Zealand, acting as an alternative to the more formal District Court. Its primary aim is to resolve disagreements fairly and efficiently, often by encouraging parties to reach their own agreement.
What is the Disputes Tribunal?
The Disputes Tribunal is an informal, inexpensive forum established to resolve civil disputes. It is presided over by a Referee, who is typically a lawyer or someone with legal qualifications and experience in resolving disputes. Referees facilitate discussions, help parties reach agreements, and, if necessary, make decisions to resolve the matter [Source: Disputes Tribunals Act 1988, s 5, s 46]. The Tribunal aims for practical and just solutions, focusing on the merits and substance of a case rather than strict legal procedures [Source: Disputes Tribunals Act 1988, s 18(6)].
Jurisdiction of the Disputes Tribunal
Jurisdiction refers to the official power to make legal decisions and judgments. The Disputes Tribunal can hear a range of civil disputes, primarily involving contracts, property, and consumer issues. However, there are specific limits and exclusions:
- Monetary Limit: The Tribunal can hear claims for up to $30,000. If all parties to the dispute agree in writing, this limit can be extended to $50,000 [Source: Disputes Tribunals Act 1988, s 13(1)(a), s 13(1)(b)].
- Types of Claims: Common types of claims include disputes over faulty goods or services, damage to property, unpaid debts, and breaches of contract.
- Exclusions: Certain types of disputes cannot be heard by the Tribunal. These include, but are not limited to, claims for defamation, real estate disputes (other than for specific monetary claims), employment disputes (which fall under the Employment Relations Authority), and matters already before a court [Source: Disputes Tribunals Act 1998, s 11, s 12]. Additionally, claims that are not for payment of money, the delivery of property, or the performance of a service are generally excluded [Source: Disputes Tribunals Act 1988, s 10].
The Application Process
The process begins when a claim is filed by the applicant, the person or entity bringing the dispute to the Tribunal. The application outlines the nature of the dispute and the desired outcome [Source: Disputes Tribunals Act 1988, s 27].
- Filing a Claim: The applicant completes an application form and pays the required fee.
- Notification: The Tribunal serves a copy of the claim on the other party, known as the respondent [Source: Disputes Tribunals Act 1988, s 30].
- Response and Counter-claim: The respondent has an opportunity to respond to the claim. They may also file a counter-claim, which is a claim made by the respondent against the applicant in the same proceeding, if they believe the applicant owes them something [Source: Disputes Tribunals Act 1988, s 30(2)].
- Hearing Date: Once the application and any response are processed, a hearing date is set and communicated to all parties involved.
The Hearing
Disputes Tribunal hearings are designed to be informal and accessible. Key aspects include:
- Informal Setting: The hearing is conducted in a relaxed manner, without strict legal formalities. The Referee guides the process, allowing each party to explain their side of the story [Source: Disputes Tribunals Act 1988, s 46].
- No Lawyers: Generally, parties are not allowed to be represented by a lawyer, barrister, or agent, except in very specific circumstances and with the permission of the Referee [Source: Disputes Tribunals Act 1988, s 40]. This ensures a level playing field and keeps costs down.
- Evidence: Parties can present evidence, including documents, photos, and witness statements. The Referee can decide on the admissibility of evidence and how proceedings are conducted to ensure fairness [Source: Disputes Tribunals Act 1988, s 44, s 45].
- Focus on Resolution: The Referee's role is to help the parties discuss the issues and explore potential solutions. If an agreement can be reached, it is recorded as a binding order.
Decisions and Orders
If the parties cannot reach an agreement, the Referee will make a decision. This decision takes the form of an order, which is a legally binding directive from the Tribunal. The Referee's decision is based on what is fair and reasonable in the circumstances, not necessarily on strict legal precedent [Source: Disputes Tribunals Act 1988, s 18(6)].
Common types of orders include:
- Payment of money: Ordering one party to pay a sum of money to another.
- Return of property: Ordering the return of specific goods or property.
- Specific performance: An order requiring a party to perform a specific act, such as completing a service or repairing an item [Source: Disputes Tribunals Act 1988, s 18].
- Dismissing a claim: If the applicant's claim is not proven or is outside the Tribunal's jurisdiction.
Costs and Fees
The costs associated with the Disputes Tribunal are generally low to ensure accessibility. There is an application fee when initiating a claim. The exact fee amounts are set by regulations, but they are significantly lower than court fees [Source: Disputes Tribunals Act 1988, s 29; Disputes Tribunals Regulations 1989]. Parties typically bear their own expenses, such as travel costs or time off work, as the Tribunal generally does not award costs for legal representation.
Enforcing an Order
An order made by a Disputes Tribunal Referee is legally enforceable. If a party fails to comply with an order, the other party can apply to the District Court to enforce it, much like a District Court judgment [Source: Disputes Tribunals Act 1988, s 54].
Appealing a Decision
Appealing a Disputes Tribunal decision is possible but on very limited grounds. An appeal can be made to the District Court, but usually only on points of law or if there has been a serious error in the Tribunal's process or procedure that resulted in an unfair hearing [Source: Disputes Tribunals Act 1988, s 56]. A party cannot appeal simply because they disagree with the Referee's findings of fact.
When to Seek Independent Legal Advice
If a person is involved in a dispute that might go to the Disputes Tribunal, or if they have received an application, they may benefit from understanding their legal position. Seeking advice from a lawyer or a Community Law Centre can clarify rights, responsibilities, and the potential outcomes of a claim or defense. This is especially true for complex claims, those nearing the monetary limit, or when considering an appeal. Information can also be sought from Citizens Advice Bureau.