Northern Territory Second Reading Speeches
[Index]
[Search]
[Bill]
[Help]
SMALL CLAIMS AMENDMENT BILL 2002
(This an uncorrected proof of the daily report. It is made available under the condition that it is recognised as such.)
Madam Speaker, I move that the bill be now read a second time.
The bill deals with an amendment to the Small Claims Act which will allow a court, in a limited number of situations, to award costs against an unsuccessful party in a small claims action. Too many times it seems people who owe less than $5000 to a creditor are not concerned about the prospect of civil recovery litigation as the cost associated with a recovery action by a creditor often makes the whole exercise uneconomical.
Small and medium sized businesses cannot afford to engage a solicitor or take the necessary time off work to pursue many outstanding debtors for sums less than $5000. The new bill gives the court the discretion to make an order in relation to costs in proceedings where the amount claimed is less than $5000 in two discreet situations. Firstly, where there is a written agreement between the debtor and creditor stating that the recovery costs in respect of the debt will be paid by the debtor; and secondly, proceedings that are for the recovery of a debt within the meaning of section 46 of the Unit Titles Act.
I will just talk briefly about section 46 the Unit Titles Act. Section 46 allows for a body corporate to recover money against a member of that body corporate for money that it has expended under the Unit Titles Act in the Northern Territory for any negligent act or omission on the part of the member of that corporation. That money is recoverable as a debt against the individual member of the body corporate. But, once again, the situation arises where you have a recalcitrant unit holder who refuses to pay that debt and the cost associated with instituting recovery proceedings against that recalcitrant unit holder makes it uneconomical for the body corporate to proceed.
The new amendment to the Small Claims Act allows for recovery of costs against a member of that body corporate. I have consulted with some small and medium sized businesses as well as a couple of managing agents of body corporates who offered the view that this type of amendment is required, particularly in regard to the tight economic climate which we find ourselves operating within and when margins are so small. The proposed amendment to the Small Claims Act will close both of the loop holes in which debtors in these two very specific categories who owe less than $5000 currently enjoy.
Madam Speaker, I commend the bill to honourable members.
Debate adjourned.
[Index]
[Search]
[Bill]
[Help]