Experimental aim in claims bill

Press, Volume CXV, Issue 33959, 27 September 1975, Page 2

Experimental aim in claims bill

New Zeulanu Press Association'

WELLINGTON, September 26.

Legislation setting up Small Claims Tribunals as part of the Magistrate’s Court was introduced in Parliament today by the Minister of Justice (Dr Finlay).

The Small Claims Tribunals (No. 2) Bill was “frankly’ experimental and could possibly be more adventurous.” Dr Finlay said.

Overseas research and' experience had shown a need for a readily accessible, informal body for quickly settling small claim- — and the bill had been drafted in such a way that the tribunals would be experimental.

* The bill stems from a private member's bill introduced by Mr G. P. A. Downie (Nat., Pakuranga) earlier this year. Dr Finlay said the present court system was too expensive for small claims. The bill— which was referred to the Statutes Revision Commitee — provides for the tribunals to be headed by a referee, who would actively investigate claims after an initial screening bv the tribunal’s registrar.

This would allow a member of the public simply to approach the tribunal with a complaint, allowing the tribunal to decide whether a claim existed, and to decide the fault.

"I hope that the persons selected as referees would enjoy the confidence of the commercial community as well as the public at large.” Dr Finlay said. Referees

The tribunals were not solely consumer bodies and for that and other reasons they had been made a part of the Magistrate’s Court system.

Dr Finlay said jurisdiction over the tribunals would be exercised either by magistrates or referees — who could be lawyers, as well as persons without formal legal training. “We see a possible need for young, energetic people

whose attitudes to the law have not become too fixed and who have not become too accustomed to the adversary system.” Dr Finlay said.

For this reason, lawyers! would become eligible for appointment as referees after three years of practice, rather than after seven years, which was the standard qualification. The bill rejected the approach taken by Mr Downie which sought to restrict the jurisdiction of the tribunals to consumer matters — allowing only a consumer to be a claimant and only a trader to be a respondent. “Such an approach not only creates a division in the community, but also ignores the need for the small trader to have a forum for settling his disputes.”

The bill was not restrictive, and put the Crown in the same position as an individual.

But Dr Finlay said that debt collection had been excluded. as such claims "would swamp the tribunals and destroy their whole purpose.” “If the new bodies were used for such purposes, there is a very real fear that they would be seen by the nublic as another institution for the extraction of money for the benefit of the commercial community rather than for the quick resolution of small disputes.” However, cases where there was a refusal to pay because of the quality of the

work done could be referred to the tribunals.

The tribunals would only handle disputes where the money involved was no more than $5OO.

Emphasising the informality of the tribunals. Dr Finlay said the referees “might be

seen as the Ombudsmen of the market place.” The legislation could be more adventurous, but it would be studied by a select committee. “My inclination is to walk before we try to run,” he said.

The tribunals would have wide-ranging power to order liability, and delivery, to set aside agreements, and to pay money or perform work. “The aim of the bill is to have a simple procedure with minimum pleadings, no legal representation and restricted rights to appear by an agent, relaxed rules of evidence, and a positive duty on the referee to investigate claims,” he said. Mr Downie said the Opposition welcomed the measure. but asked Dr Finlay when it was intended to pass it.

Mr D. Thomson (Nat., Stratford) asked Dr Finlay if the hearings of th, tribunals would be closed to the public

In reply, the Minister said that it could be some time before the bill was reported back from committee, but he assured Mr Thomson that the hearings would be open. A pilot scheme would have to be set up, probably in a provincial area, he said.