Litigation
Our Services
We can assist you make or defend a civil claim including:
- Debt recovery
- Consumer Claims
- Commercial Disputes
- Legal costs disputes
- Insolvency and bankruptcy
- Strata Disputes
What is the time limit for making a claim?
The time limit that applies to making a civil claim in New South Wales depends on the type of claim as different causes of action have different limitation periods ranging from a few months to several years. It is therefore essential that you seek legal advice as soon as possible if you may have a legal claim to avoid inadventently missing the limitation date and being forever barred from making the claim.
How long does it take to sue for a debt in the local court of NSW?
The Local Court of New South Wales manages civil matters with the aim of having 90% of cases finalised within 6 months of filing a statement of claim and 100% of cases within 12 months of filing.
It is essential that parties adhere to the Court's timetable to assist the Court and avoid the risk that the Court dismisses proceedings (if the plaintiff causes delay) or strike out a defence (if the defendant causes delay).
Does the successful party always get a costs order?
Generally, if you're wholly successful, the Court may order the other party to pay your legal costs. However, Courts have discretion as to whether or not to award costs. Some jurisdicitions, such as NCAT and the small claims division of the Local Court of NSW, have special rules regarding costs which differ from the general rule that a successful party receives an order for costs.
Read more about costs orders and what you can recover here.
What happens if the defendant doesn't pay after judgment?
There are several options available to enforce a judgment. They include:
- Issuing an examination notice requiring the judgment debtor (the party liable to pay the judgment) to provide details of their assets, employment, and liabilities.
- Applying for a garnishee order to recover money from the debtor’s wages or bank account.
- Applying for a writ for the levy of property, allowing the seizure and sale by the sheriff of the debtor’s personal property (e.g. household items of value).
- Commencing bankruptcy proceedings against an individual if the debt exceeds $10,000.
- Issuing a statutory demand if the debtor is a company and the amount owing is more than $4,000.
- Requesting the sale by the sheriff of land owned by the debtor in NSW. This is only available if the judgment debt is at least $20,000 and the sheriff has first attempted to satisfy the debt through seizure of goods. The process must comply strictly with the Civil Procedure Act and Uniform Civil Procedure Rules.
The recent Supreme Court of NSW case Khattar v Hills Shoppingtown Pty Ltd (subject to a deed of company arrangement) [2024] NSWSC 1552 is a recent example of the "equitable execution" of a judgment by the Supreme Court of NSW in circumstances where the legal options available to enforce a judgment were inadequate. Accordingly, the Court appointed receivers over certain of the judgment debtor's assets. In that case, the successful party argued that bankruptcy proceedings against the judgment debtor were not appropriate as it would mean that debtor could no longer prosecute separate legal proceedings which may increase the assets of the debtor.
The above is very brief and incomplete overview of the options available to enforce a judgment. If you have any queries, get in touch with us to discuss your matter.