Going to the Small Claims Court
We have previously written a Grey Space article "To sue or not to sue? Let's start with 'how' to sue" in which we mentioned the option of taking matters relating to monies owed to the Small Claims Court ("SCC") instead of to the Magistrates' Court ("MC"). We thought it might be useful to explain the basics of how the SCC process works given the number of enquiries we receive that can be dealt with in the Small Claims Court.
In the document attached we've explained the practicalities of the Small Claims Court Process [click here]. It is worth noting a few general comments on the SCC.
Firstly, the parties are not allowed legal representation and as a result the process of the SCC is different from that of the MC. It is also useful to know that the office of the Clerk of the SCC is usually in the same building as the MC for a specific area.
Secondly, the SCC is only for individuals. Juristic persons cannot use the SCC. So if you are considering starting up a small business like a company, a close corporations, or association, it is worth remembering that while the legal entity protects your personal assets from the business' creditors, you will not have access to the cheaper dispute resolution forum that the SCC provides.
Thirdly, you can claim up to R12,000.00 (Twelve Thousand) in the SCC. If your claim is for a bit more than R12,000.00, say R12,500.00, you can always choose to literally abandon the part of the claim over R12,000.00 to be able to bring the claim in the SCC. So if you are wary of legal costs, it is certainly worth evaluating what your typical debtors amounts come to, and whether your business should be kept in a small company structure.
While there are always hundreds of little details involved in any kind of litigation, this note just aims to give you a basic idea of how the process in the Small Claims Court works. Further details about the SCC can be found at http://www.justice.gov.za/scc/scc.htm.
So, the next time you get a scratch on your car, your friend does not pay back the small loan that you made to them, you want to get your bicycle back, or the golfer in the check pull over puts a ball through your window, consider using the Small Claims Court.
From the team
MA Cooper Attorneys
With Energy and Experience, giving you Expression