If you have been served with a court claim (often called a Statement of Claim), the most critical thing to do is act immediately. You typically have only 28 days from the date you were served to file a formal response with the court.

Most importantly, don’t panic. Read the documents carefully: Identify the plaintiff and the defendant. The plaintiff is the person or entity who starts the legal case, and the defendant is the person or entity being sued.

Make sure you understand exactly what is being claimed and why.

Do not ignore it: If you do nothing, the plaintiff can apply for a default judgment after 28 days. This means the court can order you to pay the full amount plus interest and legal costs without a hearing.

The filing of a court claim against you does not mean you must accept the allegations made against you.

In most cases, you are not required to comply with what is being asked unless a court order specifically directs you to do so.

You may choose to comply with the claim by paying money or taking (or stopping) certain actions.

If you don’t agree with the claim, you have the right to dispute it. Your options include:

1. Perform the claim: Agree and pay or comply with what is requested.
2. Negotiate a settlement: Resolve the matter outside of court.
3. Dispute the claim: File documents such as a Notice of Intention to Defend and Defence.
4. File a counterclaim: If the plaintiff owes you something, you can claim it.
   
   

In your defence, you can explain your position. Being named as a defendant does not mean you have done anything wrong.

Seeking Legal Advice

Getting legal advice is important because strict rules and deadlines apply. Missing them can result in automatic loss. A lawyer can help you understand your position and options, including:

• Procedural accuracy: Ensuring documents are properly filed under the Uniform Civil Procedure Rules 1999.
• Avoiding errors: Preventing mistakes like missed deadlines or incorrect evidence.
• Objective evaluation: Assessing whether to settle or defend the claim.
• Legal strategy: Identifying valid claims or defences.
• Counterclaims: Identifying if you can claim against the plaintiff.
• Reduced stress: Handling communication and legal steps for you.
• Negotiation: Reaching fair settlements where possible.
  
  

Potential Outcomes of Doing Nothing

Ignoring the claim is risky. The court may issue a default judgment against you for the full amount plus costs. This can lead to wage garnishment or property seizure.

Need More Information?

If you would like to know more, contact Dane Thornburgh to arrange a free initial appointment:

Email: dane@danethornburgh.com.au

Dane Thornburgh is a Senior Associate at Quinn Law Group with over 23 years of legal experience as a solicitor and former barrister.

He has advised major clients including ANZ, Facebook, Samsung, KFC, The Star, and SpaceX in commercial litigation matters.

His experience covers dispute resolution, litigation, family law, and commercial litigation.

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If you would like to know more, contact Dane Thornburgh via email above.