The proposals announced yesterday by the ACT Attorney-General, Terry Connolly, to streamline legal claims below $5000 are welcome. They may go a small way to changing the view that the law in Australia is only for the very rich who can afford lawyers or the very poor who have legal aid. The proposal is to force people with claims under $5000 into the Small Claims Court, to be renamed the Small Claims Tribunal. Previously, plaintiffs had an option: to go to Small Claims or go to the Magistrates Court. The critical difference is that the Magistrates Court can award costs. The Magistrates Court also applies the rules of evidence and other procedures more strictly than the Small Claims Court.
Mr Connolly pointed out that corporations and big organisations, including the ACT Government, tended to use lawyers and the Magistrates Court, whereas ordinary people tended to pursue their claims in the Small Claims Court. To the Government’s credit it will be bound by its own rules. Under the new system all under-$5000 claims will go to the Small Claims Tribunal. It will deal with cases more quickly. The tribunal head will be able to be more active and questioning in the search for a resolution. Given the small amounts of money involved it seems that more importance should be given to quick and cheap resolution of disputes and less to procedural fairness and technicality.
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