The government has announced that it is going to increase the jurisdictional limits of the Disputes Tribunals up to $50,000.00 (presently $7,500.00 as of right or $12,000.00 by consent). I don't know what other folk feel about that prospect but I believe that such an increase will be a disaster.
My experiences in the DT have consistently shown that the "variability factor" in their decision making leaves a great deal to be desired. Decisions made are often quite arbitrary and lack any consistent logic. Cheap though the DT may be, the outcomes generated are very much a lottery. In an attempt to take some pressure off the District Court they are in my opinion exposing the public to a second grade system that I believe does not reflect at all well on our Court system.
Don't get me wrong, there are many capable DT referees but there are also many whose ability is questionable to put it mildly. The new limit of $50,000.00 opens up a potentially huge range of problems particularly when you take into account that parties are not entitled to be represented and that whilst the referee must consider what the law is they can basically decide a particular case on the basis of what they believe to be "just".
I am genuinely appalled at this development and what it may mean for many people and for small businesses. It also does not help the ever present need for a truly user friendly debt collection Court or system.
I would be interested to hear what others think of this development especially from those who have had some experience with the DT. What so you think?
Thursday, March 19, 2009
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