Local Court of New South Wales

Civil Jurisdiction

Disclaimer

The information contained on this website is a guide only and should not be considered to be legal advice. Defendants who are unsure about any aspect of the matter should seek professional legal advice. Information about legal advice can be found here.

What is a Civil Case?

In the Local Court, civil cases are dispute about money or property, such as:

  • Loan agreements
  • Unpaid bills
  • Damages from a motor vehicle accident
  • Services paid for and not provided
  • Property not returned

The Local Court of New South Wales deals with civil disputes for claims up to $100,000.

The Local Court has two divisions to determine civil cases:

  • The Small Claims Division hears claims up to $20,000
  • The General Division hears claims over $20,000 (up to $100,000).

For a civil case to be proven, the standard of proof is ‘on the balance of probabilities’, meaning that it is more likely than not to have happened.

Small Claims Division

Proceedings in the Small Claims Division are generally less formal and less technical than in other Court jurisdictions, and the rules of evidence don't apply. This means that witnesses are not called to give evidence in defended small claims matters, unless the court decides otherwise.

In defended matters, a pre-trial review is held before a hearing is set. The purpose of the pre-trial review is to help the parties reach an agreement, if possible, without the need for a further hearing. A pre-trial review can be conducted by a Registrar, Assessor or Magistrate. If agreement cannot be reached the Court will give directions for the parties to file witness statements by a certain date.

General Division

Proceedings in the General Division are more formal. In defended cases, witnesses attend Court and give evidence and cases are determined by a Magistrate.

Going to Court for a Civil Case

All parties in civil cases are encouraged to try and reach an agreement without needing to go to court.

Most civil cases do not have a hearing or need parties to attend court.

Where a defence to a Statement of Claim is filed, the case is listed before the court. What occurs after the defence is filed depends on the division the case will be heard in.

If you want to lodge a defence but a default judgment has been entered, you can apply to have the default judgment set aside. This is done by filing a notice of motion. You should get advice about your defence and what to include in the notice of motion.

Someone Owes You Money

If someone owes you under $10,000

You can try talking to the person that owes you money or sending a letter of demand.

If someone owes you more than $10,000

If your dispute is about more than $10,000 it is best to get legal advice before starting any court proceedings.

Tenancy Cases and Debts

If your matter relates to a tenancy case, please see the NCAT website.

If you have an order from NCAT that you're seeking to enforce, see Enforcing NCAT orders.

If you're seeking to enforce a NCAT order, such as a warrant for possession in the Local Court, see Federal Diversity jurisdiction.

Federal Diversity Jurisdiction

In some circumstances, NCAT does not have power to deal with certain disputes involving parties that reside in another state or territory. Instead, these parties must lodge their case in the Local or District Court, which is heard under what is called the federal diversity jurisdiction.

If you have been directed to file at Court or you have a judgment or order and you're seeking to file a warrant for possession, please contact your Local Court for more information.

More information can be found at Enforcing NCAT orders.

Further Information

Further information on what to do when someone owes you money is located on the Legal Aid Website.

You Owe Someone Money

If you have received a Statement of Claim you can pay the money or apply to pay by instalments. If you don't owe the money you can defend the claim. The information sheet below will provide more detail:

If you receive a Statement of Claim and do nothing, the person issuing the claim can apply to the court for a judgment to be entered against you.

A judgment can affect your credit history and can result in further action being taken against you to recover the money.

Neighbourhood issues and how to resolve them without going to Court

Settling a Civil Case

Civil disputes can be settled by an agreement between the parties involved. If the parties can reach a settlement there is no need for a court hearing.

Where parties agree on a settlement, they should put their agreement in writing and each party should sign the agreement. This type of agreement is called 'terms of settlement' or 'consent orders'.

Formalising a Consent Order

The agreement is then presented to the Court and a Magistrate will consider if the agreement is appropriate and formalise it. The vast majority of civil cases are settled without a Court hearing.

Many civil matters are settled during the course of a Court hearing. 

Orders and Judgments

In civil cases, a Court can make an order or a judgment, or both. An order is usually made during the case ordering a party to file or serve documents or do other things.

A judgment is the order a Magistrate or Assessor makes when deciding the case.

A default judgment can be given in cases where there is no defence filed.

If a default judgment has been entered and a defendant wants to file a defence, they can apply to have the default judgment set aside. This is done by filing a notice of motion. You should get legal advice about your defence and what to include in the notice of motion.

Registration of Orders Made by a Court or Tribunal

Orders made by a Court or Tribunal may be registered in the Civil Jurisdiction of the Local Court for enforcement. Once registered the amount owing becomes a Judgment of the Local Court of New South Wales.

This may include:

The amount to be enforced must be within the Local Court jurisdiction, less than $100,000 to be registered in the local court.

Orders (or certificates of order) are registered by completing Form 45: Form Registration/filing of certificate of judgment or order.

There is a fee for the registration of a certificate or order and further fees apply for enforcement. Enforcement action can be sought at the same time as the registration and Forms for any enforcement must also be completed.

A list of forms used for registering orders and enforcement are available on the Uniform Civil Procedure Rules (UCPR) forms page.

Judgment Debts

After a judgment or default judgment is made, the amount to be paid is due immediately. If a defendant does not pay, the judgment amount can be enforced.

Enforcing a Judgment Debt

Recovering Money under a Judgment Debt

If a Court has made a decision and you do not comply with the orders made, the other person (who opposed you in Court) can take action to have the decision enforced.

Enforcement of Civil Judgments

The most common options for enforcing a Court judgment for an amount of money include a:

  • Garnishee order
  • Examination notice
  • Writ of execution, also called a writ for levy of property.

Garnishee Order for Wages/Salary or Debts (Bank Account)

This is an order to a bank or employer to deduct money from the bank account or wages for the amount owing.

Examination Notice

This is used to gather information about the financial circumstances of the person that owes the money.

Writ of Execution or Writ for Levy of Property

This directs the sheriff to take and sell property of the person that owes the money. There are additional costs added to the amount owing when the sheriff takes action on a writ of execution.

For more information see Enforcing Writs for Levy of Property or Property Seizure Orders.

Paying a Judgment Debt

In civil cases, a Court can make an order or a judgment, or both. An order is usually made during the case ordering a party to file or serve documents or do other things.

A judgment is the order a Magistrate or Assessor makes when deciding the case.

A default judgment can be given in cases where there is no defence filed.

After a judgment or default judgment is made, the amount to be paid is due immediately. If a defendant does not pay, the judgment amount can be enforced.

If a default judgment has been entered and a defendant wants to file a defence, they can apply to have the default judgment set aside. This is done by filing a notice of motion. You should get legal advice about your defence and what to include in the notice of motion.

Paying a Judgment Amount in Civil Cases

Judgment amounts that are determined in civil cases need to be paid immediately or as ordered by the Court.

You need to pay a civil judgment amount directly to the party in whose favour the order was made.

What if you can't Afford to Pay a Judgment?

If you cannot pay the full amount, want an extension of time to pay or want to pay by instalments you should first speak to the person or firm to whom the money is owed. If they agree, put the agreement in writing. Both you and the other party need to sign this as a record of the agreement.

Alternatively, you can apply to a registrar at the court where the order was made. The registrar will make a decision. However, the other party can object. The objection may have to be heard by a Judicial Officer.

If you do not comply with the payment arrangement or do not pay the judgment amount as required, enforcement action may be taken to recover the amount owing.

For more information about enforcing a judgment, see the Legal Aid website.

Appeals

The right of appeal in civil cases is limited. A Magistrate of the Local Court can review a decision of a Registrar, such as decisions in Notices of Motion, however, a Magistrate cannot review a decision of an Assessor.

Where a civil case has been referred to an Arbitrator and an award is made, an appeal against the Arbitrator's decision can be made to the Local Court. A Magistrate can re-determine the case. This is called an application for a rehearing of an arbitration which is made by filing a Notice of Motion. There are time limits for filing an application for re-hearing and fees apply.

Decisions in cases heard in the Small Claims Division are appealed to the District Court but only on the grounds of lack of jurisdiction or denial of procedural fairness.

Decisions in cases heard in the General Division are appealed to the Supreme Court but only on a question of law. Leave to appeal may be sought on other grounds.

Appeals in civil cases are made by summons and are lodged at the higher Court. The time limit for appeal is 28 days after the order. Fees apply to file a summons at a higher Court.

You can read more about appeals on the Legal Aid website, click here.

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