What Is the Disputes Tribunal?
The Disputes Tribunal of New Zealand is a specialist forum established under the Disputes Tribunal Act 1988 to resolve civil disputes in a timely, cost-effective, and accessible manner. It serves as a more informal and practical alternative to the traditional court system.
The Tribunal adopts an inquisitorial approach to resolving disputes, with referees actively assisting parties in presenting their best case and establishing the relevant facts. It is designed to be less formal, faster, and more cost-effective than a Court, featuring several key characteristics:
- Private hearings and minimal legal involvement: Proceedings are held in private, and legal representation is generally not allowed. This helps to keep costs low and proceedings more accessible and understandable.
- Limited appeal rights: Appeals can only be made in cases of procedural unfairness or prejudice, which promotes finality and resolution.
- Flexible decision-making: Referees are guided by legal principles but are not strictly bound by them. This allows decisions to be based on what is fair and reasonable in the circumstances.
Bridging the Justice Gap
A key issue within the civil justice system is the so-called “justice gap”—the range of claims that fall between the Tribunal’s current $30,000 cap and the higher threshold typically pursued in the District Court. Due to the significant costs associated with court proceedings, many people find it uneconomical to bring claims valued between $30,000 and $60,000. As a result, they may abandon their claim altogether or reduce its value to fit within the Tribunal’s limits.
Legislative Proposal to Increase Jurisdiction
To address this gap, the Government introduced the Disputes Tribunal Amendment Bill on 14 November 2024. The Bill passed its first reading in Parliament on 19 November 2024 and was referred to the Justice Committee. Public submissions closed on 16 January 2025, and the Committee was expected to report back in May 2025.
The Bill proposes several key changes:
• Raising the Tribunal’s monetary jurisdiction from $30,000 to $60,000;
• Introducing a new $468 filing fee for claims over $30,001, to support cost recovery and reflect the private benefit of resolving higher-value disputes in the Tribunal;
• Allowing referees to order reimbursement of filing fees, so successful applicants can recover the cost from the respondent.
Why the Change Is Needed
The goal of the proposed changes is to improve access to justice for individuals and small businesses by providing a more affordable forum for resolving moderate-value claims. According to the Ministry of Justice, around 2,000 additional claims could be handled by the Tribunal each year under the expanded jurisdiction.
Justice Minister Paul Goldsmith explained that the reform is part of a wider effort to improve efficiency and public trust in the justice system. He further commented that the Disputes Tribunal offers a quick, informal, and cost-effective way to resolve civil disputes. Doubling its jurisdiction will give more New Zealanders a practical path to justice without the financial burden of legal fees.
Feedback from Public Submissions
Jurisdictional Increase
The Justice Committee received 107 written submissions and heard oral evidence from three submitters. Many submitters welcomed the proposed increase, highlighting its potential to expand access to affordable dispute resolution and reduce pressure on the courts. They also suggested it could improve public confidence in the justice system.
However, some raised concerns. Higher-value claims may involve more complexity and require legal or technical expertise, which could disadvantage people without legal training or financial resources. Others were concerned that the Tribunal may become overburdened by more complex cases.
Some submissions also expressed fears that the changes might compromise tikanga Māori, arguing that prioritising efficiency could come at the cost of fairness and community-based values.
Despite these concerns, the Committee believes that increasing the jurisdiction will significantly improve access to justice for lower- and mid-value claims.
New Filing Fee
Several submitters opposed the introduction of the $468 filing fee for claims over $30,001. They argued it could undermine the Tribunal’s role as a low-cost dispute resolution forum and might disproportionately impact vulnerable individuals.
Alternative suggestions included:
- A tiered or income-based fee system, lowering the fee or allowing for fee waivers in cases of financial hardship.
There was also strong support for enabling successful claimants to recover filing fees. In response, the Committee noted that the Regulatory Systems (Tribunals) Amendment Bill, currently before Parliament, would give referees discretion to order the respondent to repay the filing fee if the applicant is wholly or partly successful. This change would help ensure the financial burden of seeking justice doesn’t fall on the wronged party.
Conclusion
The proposed expansion of the Disputes Tribunal’s monetary jurisdiction represents a significant step toward closing New Zealand’s civil justice gap. By enabling more claims to be resolved in a low-cost, informal setting, the reform aims to make justice more accessible, reduce pressure on the courts, and deliver timely and fair outcomes.
If enacted, the Bill will modernise the Tribunal’s role and reinforce its importance within New Zealand’s justice system.
By Michael Ritter | Solicitor | 07 571 8076 | michaelr@bchlaw.co.nz
The information contained in this article is provided for informational purposes only and should not be construed as legal advice on any subject matter
