We welcome the increase to Disputes Tribunal maximum claims – but the new limit is still too low.
The maximum level has been raised from $7500 to $15,000 or with the consent of both parties from $12,000 to $20,000. We wanted the maximum set at $50,000.
Consumer regularly hears about disputes that will not fit within the new limits. Building disputes often involve sums greater than $20,000 even though the scale of work may be small. Such disputes will be forced into District Courts although the Disputes Tribunal would have been a better place for them.
In our April 2009 submission we called for an increase in the limit to $50,000.
However, the Minister of Justice Simon Power has not ruled out further changes to the threshold. We hope this is the case.
The Disputes Tribunal Amendment Act takes effect from next month.
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I think this increase has to be seen in the context of a dramatic overhaul of District Court practice which comes into effect in November. It is going to cut down a lot of the faffing about to get things ready for the DC, and may well reduce trial time.
Within the Disputes Tribunal community, there was a real concern that a $50,000 limit was too high to be dealt with, given the informal procedures and lack of legal representation.
The best way to get a $50k building dispute resolved is to have someone with genuine building expertise involved, as mediator or arbitrator. DC practice will allow this, but not the Disputes Tribunal.
Well known rule of thumb - it is not worth going to court for less than $50,000 by the time you add up legal fees and time. It appears that the bad guys know this too! Disputes Tribunal needs to go to at least $40,000 if not $50,000. The court process is also much more stressful - it is hard to put a price on this.
And about time.
I/we found it a great avenue to complete a dispute with a home building company in an inexpensive manner.
Yes, it's a concillatory process, with both sides able to state their cases, before an arbitrator, who basically guides you to a resolution.
We not only rec'd full refund of our initial $3,000 deposit for plans, etc for a home build-with a very well known company-but also had interest on the deposit,other costs we had incurred refunded too.
A satisfactory result for both parties, and 1 that was over relatively quickly instead of potentially progressing thru the Courts system.
MJP-Kaukapakapa
They say the Distuptes Tribunal is a 50/50 - it can go either way and is often a split decision if it's confusing as it's based on common sense rather than law and cost $100.
The District Court is a 50/50 - it's based on the law but done to a badget so seldom are all legal aspects explored. The DC costs circa $50k.
The High Court does a good job but costs minimum $250k.