by Bill Andrews - Snedden Hall & Gallop
When debtors fail to meet their obligations, options must be explored for recovery of the debt. How debts can be recovered depends on a number of considerations:
- Sub-contactors who are owed monies under a contract in the building industry after 1 July 2010 are entitled to pursue a summary process for recovery under the Building & Construction Industry (Security of Payment) Act 2009.
- Debts arising from the sale of goods or delivery of services for amounts less than $10,000 can be the subject of claims through the ACT Civil and Administrative Tribunal (ACAT) under a relatively straightforward claims process. You do not need solicitors to conduct such claims and, indeed, the legislation limits the recovery of legal costs even if you are successful. It may be uneconomic for you to engage lawyers for these smaller debts.
- Claims for more than $10,000.00 can be recovered through litigation in the ACT Magistrates Court or Supreme Court. Most claims can be framed around a claim for goods sold and delivered or services provided based on an invoice. Other claims, however, may require a detailed claim based on the allegation of breach of contract. Proper legal advice should be obtained to explore your options for larger claims.
Currently, the filing fees for instituting claims through the courts are as follows:
ACT Magistrates Court $420.00
ACT Supreme Court $725.00
The professional fees associated with a claim can be agreed on in advance under Snedden Hall & Gallop’s fixed fee arrangement.
Bill Andrews, Director
(02) 6285 8077