Last year Edith, an elderly widow, paid a local painting contractor $7,000 to paint part of her house.  After only 12 months the house looks terrible and needs to be painted again.  The painting contractor has refused to fix the work and Edith has found another more reputable painter who will redo the work for a further $7,000.  

Edith’s lawyer has advised her that she can sue the first painter in the District Court but that the cost of doing so may make it uneconomical for her.  Fortunately for Edith, she can bring a claim in the Disputes Tribunal. 

What types of claims are covered?

The tribunal is very versatile and can hear claims about almost anything, from car repairs to grazing stock, from a faulty new computer to hair dressing for a wedding gone terribly wrong.

There are some limitations.  There must be a dispute - you can’t file a claim if someone simply refuses to pay a bill, when there is no argument about whether they owe the money.  The Tribunal is also limited in terms of disputes concerning employment, land sales, wills, rates, taxes, and other statutory amounts. 

For most disputes the tribunal is an informal, inexpensive, quick and private way to resolve the disagreement. 

If the dispute relates to something worth up to $7,500, a claim can be filed as a matter of right.  If the value is between $7,500 and $12,000, both sides must consent for the matter to be heard by the tribunal.  The tribunal has no jurisdiction to hear a claim over $12,000. 

Procedure

The tribunal is much more flexible than a District Court.  No one is allowed to be represented by a lawyer and the rules provide that the tribunal shall determine disputes “according to the substantial merits and justice of the case”.  In doing so it is not bound to give effect to strict legal rights or obligations.  This emphasis on what is fair and just, rather than the letter of the law, allows a referee to take matters into account that a judge in a District Court may be prevented from considering. 

In Edith’s case, she may have signed a contract with a clause prohibiting her from claiming compensation more than 6 months after the work was completed. The referee is not bound by that provision and may award her $7,000, if that seems to be fair and just.  The referees are also not bound by the evidential rules of a court. 

Preparation is the Key

Probably the single most important aspect of bringing (or defending) a claim in the tribunal is preparation.  Make sure that you have copies of any important documents, such as bills, receipts, photographs or reports.  Ensure that any important witnesses can attend.  If they cannot do so in person they may be able to attend by telephone and support a written summary of what they saw or know.  Review each step of your claim (or defence) thoroughly before the hearing so that you can anticipate any challenge that the other party might make and anticipate any concerns that the referee may have.

Conclusion

Long memories of the problems associated with the Disputes Tribunal’s predecessor, the Small Claims Tribunal, mean people sometimes assume the tribunal is only suitable for the most basic disputes.  In fact, if you prepare your claim carefully and thoroughly, it can be an excellent forum to resolve a dispute of up to $12,000.