Do you need to commencement proceedings? There are three (3) main options to commence proceedings against a defendant:
- Commence proceedings in the Queensland Civil Administrative Tribunal (“QCAT”); and
- Commence Proceedings in the Court with jurisdiction for civil litigation or commercial litigation; or
- Serve a statutory demand.
The purpose of commencing proceedings is to use legal remedies to recover the outstanding sum and/or to recover damages.
This article explains how to commence proceedings against a person or a company.
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Commence proceedings in the Queensland Civil Administrative Tribunal (“QCAT”)
QCAT was established to ensure that people in Queensland have the ability to commence small civil claims, without having to pay costs which outweigh the benefit.
QCAT has jurisdiction to hear debt disputes related to a fixed or agreed sum of money, valued up to and including $25,000.
Once the paperwork is completed and filed it is then served on the debtor. When served with the stamped documents, the other party (called the respondent) may file a response.
If the debtor does not file a response then you may be awarded a decision in default, where the member at QCAT orders the debtor to pay.
If the debtor does file a response, then all parties will then receive a notice to attend mediation including the date, time and location of mediation. The aim of mediation is to get all parties to reach an agreement.
It is vital that you submit your paperwork correctly and provide detailed supporting documentation. We can guide you through completing your paperwork and collecting the supporting documentation.
QCAT Filing fees are as follows:
| Applications or referrals under: | Application fee |
| Not more than $500, or no amount claimed | $26.95 |
| More than $500 but not more than $1,000 | $69.20 |
| More than $1,000 but not more than $10,000 | $123.20 |
| More than $10,000 | $345.80 |
However, these fees change so best to check out their website – https://www.qcat.qld.gov.au/resources/fees-and-allowances
Commence Proceedings in the Court with Jurisdiction
Depending on the debt amount owing, you can start proceedings in the Magistrates Court, District Court or the Supreme Court.
The monetary jurisdictions are set out below:
| Monetary Limit (amount of debt) | Court with Jurisdiction |
| Up to $150,000.00 | Magistrates Court |
| $150,00.01 to $750,000.00 | District Court |
| Over $750,000.01 | Supreme Court |
In Queensland, an action for debt recovery is usually started by Claim. A Claim and Statement of Claim is drafted, filed in the registry of the Court with jurisdiction, sealed (stamped with the Court’s seal) and then you will need to serve the debtor with a copy of the Clam.
Once the debtor is deemed served, they will have twenty eight (28) days in which to file and serve a Notice of Intention to Defend and a Defence. If they do not file and serve a Notice of Intention to Defend and a Defence then you can apply for default judgment.
Providing the debtor has not defended the claim, we can apply for default judgment. After you receive judgment in your favour, you have the ability to enforce that judgment against the debtor or debtors.
Serve a Statutory Demand
If the debtor is a company, and the debt is more than $2,000.00 then you can serve the debtor with a statutory demand. In most cases we would not recommend this until after you receive a judgment from a Court with jurisdiction. The reason for this is that pre-judgment statutory demand can easily be set aside. All a company needs to do is show that:
- There is a genuine dispute about the existence or amount of a debt; and/or
- That the company has an offsetting claim; and/or
- Because of a defect in the demand, substantial injustice will be caused unless the demand is set aside; and/or
- There is some other reason why the demand should be set aside.
Providing the debtor has not defended the claim, we can apply for default judgment. After you receive judgment in your favour, you have the ability to enforce that judgment against the debtor or debtors.
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OR CALL: 1300 545 133 FOR A PHONE CONSULTATION
