PURSUING CLAIMS IN THE COURTS Small Claims Tribunal and Magistrate’s Court 1
PURSUING CLAIMS IN THE COURTS • What is a breach of contract? • What can I do when there is a breach of contract? • What can I claim? • When should I file a claim with the court? • Brunei Darussalam Arbitration Centre • Small Claims Tribunals • Magistrate’s Courts • Useful links • General information 2
PURSUING CLAIMS IN THE COURTS – WHAT IS A BREACH OF CONTRACT? WHAT CAN I DO WHEN THERE IS A BREACH OF CONTRACT? • Contract – written/verbal agreement to do something in exchange for money • Common contracts: • Hire-purchase of cars, equipment • Lease/rental agreements of shop units, equipment, vehicles • Delivery/supply of goods or services • A breach of contract means that the terms of the contract have not been complied with e.g. goods not supplied, services not rendered, payment not made • Options when faced with a breach: • Negotiate • Mediate • Sue in court • Arbitration 3
PURSUING CLAIMS IN THE COURTS – WHAT CAN I CLAIM? • Negotiation/mediation – outcome or settlement is up to the parties based on the negotiations. • Pros – Both parties have control over the process, preserves business relationships, outcome extends beyond payment of money, can be made confidential • Cons – If there is no claim in court, the settlement agreements are not enforceable as a court order and you may need to go to court to enforce your rights under the main contract and/or settlement agreement. Negotiating powers may not be equal. Settlement may not be legally enforceable. • Claims in court/arbitration – usually only money award - outstanding debts and/or losses incurred (calculation of losses depends on the facts of the case) can be claimed – courts do not generally force a party to perform its side of the bargain. • Pros – enforceable by the court • Cons – If the vendor denies the breach - requires parties to give evidence, may take time before a court gives its decision – also, may incur legal costs/court costs, subject to appeals to higher courts, may damage business relationships 4
PURSUING CLAIMS IN THE COURTS – WHEN SHOULD I FILE A CLAIM? SIX (6) YEARS FROM BREACH 5
PURSUING CLAIMS IN THE COURTS – BRUNEI DARUSSALAM ARBITRATION CENTRE (BDAC) • BDAC offers arbitration and mediation services • Arbitration – private proceedings, does not involve the courts unless parties agree to it. However, process is similar to court i.e. giving of evidence etc. There will be an arbitration award. • Mediation – neutral third party (mediator) guides negotiation process and tries to get parties come up with mutually acceptable solutions to the problem. The mediator merely guides the parties and does not say who is right or wrong. • For more information, please visit their booth and/or go to www.bdac.gov.bn 6
PURSUING CLAIMS IN THE COURTS – COURT OPTIONS OPTIONS FOR BREACH OF CONTRACT FOR THE SUPPLY OF GOODS AND SERVICES • If claim exceeds $300,000 – High Court • If claim exceeds $50,000 and does not exceed $300,000 – Intermediate Court • If claim does not exceed $50,000 – Magistrate’s Court • If claim does not exceed $10,000 – Small Claims Tribunal OTHER TYPES OF CLAIMS • For breach of director’s duties – High Court • For personal injury – seek legal advice – depends on possible value of claim 7
PURSUING CLAIMS IN THE COURTS – SMALL CLAIMS TRIBUNAL SMALL CLAIMS TRIBUNAL • No lawyers are allowed to represent any party • Informal procedures • IMPORTANT INFORMATION: • If the breach of contract occurred more than ONE (1) YEAR from the date of filing, the claim cannot be filed in the SCT. • No legal advice will be given by the Court or SCT. 8
PURSUING CLAIMS IN THE COURTS – SMALL CLAIMS TRIBUNAL SMALL CLAIMS TRIBUNAL – THE CLAIM • Steps: • File a statement (claim) – a document setting out the contract details, the value of the claim and the basis of the claim – this will be served by the court. • Consultation – a negotiation/mediation process - attempt at settlement (a negotiated agreement which sets out how the case will be settled) – the settlement is binding as an order of the SCT. • Failure to settle – adjudication – parties will be required to give evidence – an adjudicator will decide the outcome – usually an order to pay. • Fees: Not Exceeding Exceeding $5,000.00 $5,000.00 but not exceeding $10,000.00 Consumer $10.00 $20.00 Non-Consumer $50.00 $100.00 9
PURSUING CLAIMS IN THE COURTS – SMALL CLAIMS TRIBUNAL SMALL CLAIMS TRIBUNAL – IF YOU ARE THE RESPONDENT • Steps: • You will receive a claim. • Attend consultation and/or adjudication. • You can also make a counter-claim if you have a claim against the plaintiff (the claim procedure applies to counter-claim as well) • Same fees for a counter-claim. 10
PURSUING CLAIMS IN THE COURTS – MAGISTRATE’S COURT MAGISTRATE’S COURT – THE CLAIM • Lawyers are allowed to represent parties. • Similarly, no legal advice will be given by the court. • Steps: • File the claim. • Serve the claim – the court can serve this for you. • Attend a mention to determine whether the defendant admits to the claim. • If the defendant admits the claim – a consent judgment is entered. You can receive $400 for a successful claim if the defendant admits the claim. • If the defendant does not admit the claim, he will be given time to file a defence (a document stating why he or she does not think that you have a claim). • You will be served the defence and you will have the opportunity to reply. • Potential mediation to reach a negotiated settlement. • If mediation is unsuccessful, a trial with witnesses will be held. • A magistrate will determine the outcome. 11
PURSUING CLAIMS IN THE COURTS – MAGISTRATE’S COURT MAGISTRATE’S COURT – IF YOU ARE THE DEFENDANT • You will receive a claim from the plaintiff. • You will be required to attend a mention. If you fail to attend, a default judgment may be entered against you and you will be required to pay the sum owed and costs ($400 to the plaintiff for the hearing and other administrative costs incurred by the plaintiff). • If you admit the claim, a consent judgment will be entered and you need to pay an additional $400 in costs to the plaintiff in addition to the administrative costs the plaintiff incurred in bringing the claim. • If you wish to challenge the claim, you must file and serve a defence. • At the same time, you can file a counter-claim and serve it on the plaintiff. • The plaintiff then can file a defence against the counter-claim if he decides to challenge it. • A mediation may be attempted. If unsuccessful, a trial will be held and the outcome will be determined by a magistrate. 12
PURSUING CLAIMS IN THE COURTS – EXECUTION PROCEEDINGS IF YOU HAVE AN ORDER IN YOUR FAVOUR IN BOTH THE SCT AND MC • File a JUDGMENT DEBTOR SUMMONS – a summons for the judgment debtor to come to court for the court to determine how payment should be made • Serve it to the other party • Mention(s) will be held to determine how much the other party can afford to pay per month • An order will be made by the court • If the other party fails to comply, you can apply to seize the other party’s property and have it sold to pay for the amount owing 13
PURSUING CLAIMS IN THE COURTS GENERAL INFORMATION Website : WWW.JUDICIARY.GOV.BN E-leaflets can be found by selecting ‘e - Leaflets’ in the ‘Information’ drop down menu and/or by clicking on the various courts in the ‘The Judiciary’ drop down menu. Opening hours : 7.45am to 12.15pm and 2pm to 4.30pm Other useful information you can get from the website: • Fees • Statistics http://judiciary.gov.bn/SJD%20Site%20Pages/Statistics%20Main%20Page.aspx 14
PURSUING CLAIMS IN THE COURTS GENERAL INFORMATION Addresses : High Court & Intermediate Court The High Court-Supreme Court Building Jalan Raja Isteri Pengiran Anak Saleha Bandar Seri Begawan Magistrate’s Court & Small Claims Tribunals Brunei-Muara Ground Floor, The Law & Courts Building Jalan Raja Isteri Pengiran Anak Saleha Bandar Seri Begawan Tutong Tutong District Courts Building (excluding Small Claims Tribunals) Lot 16545 Bukit Bendera Mukim Pekan Tutong Belait Belait District Courts Building Simpang 28, Jalan Maulana Kuala Belait Temburong Temburong District Office Building (for filing of Magistrate Court cases only) Pekan Bangar 15
PURSUING CLAIMS IN THE COURTS Q&A 16
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