Welcome to the Medium Claims Court – Disputes Tribunal Financial Threshold Doubles

The Disputes Tribunal Amendment Bill came into force on 24 January 2026.  Changes include doubling the financial jurisdiction for the Disputes Tribunal (the Tribunal) from $30,000 to $60,000, and introducing a higher filing fee tier for more significant Tribunal claims.  Modelling from the Ministry of Justice estimates the Tribunal will hear around 2,000 more claims per year as a result of these changes.

The Tribunal (often referred to as the “small claims Court”) represents a more accessible, cheaper and quicker alternative to traditional Courts, while still offering a binding decision.  That makes the Tribunal an attractive alternative to Courts, for which the process is a lot slower, and often requires expensive legal representation.

The increased financial limit of $60,000 broadens the eligibility for claimants considering making a Tribunal claim, as an alternative to Court proceedings.  Before making a claim however, it is important to understand how the Tribunal works.

How does the Tribunal work?

The Tribunal has some distinct differences when compared to traditional Courts.  When seeking legal advice, it is important that the parties (and their advisors) are aware of the following:

• Inquisitorial approach: The Referee (essentially the “Judge” for the Tribunal) determines disputes according to the “substantial merits and justice of the case”.  This approach allows a Referee to have regard to the law, but they are not bound to give effect to strict legal rights or obligations.  This allows the Tribunal to make a much wider variety of decisions, for example a claim that may strictly fail in Court, may uniquely succeed in the Tribunal (or vice versa);
• Certain disputes barred: The Tribunal cannot hear particular categories of claims.  For instance, the Tribunal cannot be used as a “debt collection” mechanism, and cannot deal with rental disputes.  A useful list of what the Tribunal can and cannot help with, can be found here;
• Legal representation: Legal representation at a Tribunal hearing is only allowed with the consent of the other party, or by an application to the Tribunal.  The higher the claimed amount, and/or the more technical the claim, the more likely an application for legal representation will be granted;
• Limited cost awards: A successful party in a Court hearing is entitled to have some of their legal costs paid by the other party.  However, that is not the standard position in a Tribunal hearing.  In the Tribunal, each party will bear their own legal costs, although the Tribunal does have the power to award costs in exceptional circumstances;
• Privacy: Tribunal hearings are conducted privately.  Tribunal decisions are able to be published, but the names of the parties are often anonymised.

What do I need a lawyer for?

Around 60% of Tribunal cases are for contractual claims, with the most common relating to small to medium businesses.  We can advise on Tribunal queries at all stages, from initial queries through to representation at the hearing itself.  Areas we can provide assistance with are:

• Cost effectiveness: In 2024, the estimated cost of a one day hearing in the District Court was estimated at $10,845, with the true cost often being higher still.  Claimants seeking a monetary award in excess of $60,000 may want to consider taking advice on reducing their claim to $60,000, in order to fit within the Tribunal’s jurisdiction;
• Drafting submissions: There is a misconception that providing more information equates to a higher chance of success.  However, providing too much information creates a risk that the Referee focuses on information that is either irrelevant, or harmful to your case.  We can help ensure that submissions contain the most relevant information for a Referee to consider, helping you to put your best foot forward at the hearing;
• Appeals: The Referee’s decision is binding and final on the parties.  Parties have the right to appeal, but the grounds of appeal are restricted to issues of unfairness or prejudice – mere dissatisfaction with a decision, is not a ground for appeal.  If you have received a decision that is not in your favour, we can advise you on the potential merits and pitfalls of an appeal.  However, “unfairness” and “prejudice” are both interpreted quite narrowly, and the timeframes for lodging an appeal are short, so it is important to seek legal advice as quickly as possible.

Conclusion

The financial increase to $60,000 will be welcomed by many.  However, the combination of restricted legal representation, flexible decision making from the Tribunal, and limited appeal rights, mean if you are making (or defending) a Tribunal claim, it is critical to get things right from the outset.

We regularly advise on Tribunal matters at all stages, from initial queries, support during the hearing itself, and on what your options are if a decision has not gone your way.  If you have a Tribunal claim that you want targeted, effective legal advice on, feel free to get in touch with one of our team for a confidential chat.

Andrew is a Senior Solicitor in our Dispute Resolution Team and can be contacted on 07 958 7447.