Tuesday, March 31, 2009

When not to use the Small Claims Tribunal

Suing in a Tribunal often takes more time compared with Subordinate Courts lawsuits, especially if you are not familiar with court procedures, but in the end, it is often cheaper.

However, if you decide to sue in the Subordinate Courts, the Magistrate's Court can handle claims of up to $60,000. You can hire a lawyer to handle all your paperwork. And the usual rule applies - the loser pays legal fees of the winner.

Note however, that this rule does not mean that you get all your legal fees. As a very rough guide, you may receive about 75% of your legal fees. Also, if the other party is insolvent, then you will not recover either this amount or the money owing to you under your claim.

So the question is whether it is worth the risk in order to have a lawyer handle all the court procedures.

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