LAWYERS working in debt recovery are concerned about the implications of part of a package of seven bills aimed at making sweeping changes to Western Australia’s lower courts.
LAWYERS working in debt recovery are concerned about the implications of part of a package of seven bills aimed at making sweeping changes to Western Australia’s lower courts.
The bills are due to go before State Parliament this week.
The key change concerning these lawyers is a proposal to raise the threshold for civil disputes to be heard without legal representation, from $3,000 to $7,500.
Legal representation will be allowed but plaintiffs would not be able to claim the associated costs from the other party, even if they won.
Arns and Associates’ Paul Arns said the proposal would have a huge impact on small business people who were not interested in taking time off work for a small debt.
“The other concern I have is what incentive does a debtor have to pay when there is no payment of legal costs at the end,” he said.
Mr Arns said he had lodged a submission with the Law Society of Western Australia protesting against the move.
Jones King’s Gary Rutherford said his concern was that there would be no way for plaintiffs to recoup their legal costs for debts up to $7,500.
“There are a fair amount of proceedings that will fall under the new limit,” he said.
However, Small Business and Enterprise Association executive director Philip Achurch said most small businesses could not afford legal representation, even for debts up to $7,500.
“Anything you have to follow up outside of the small business is a time cost anyway,” he said.
“Most small business owners consider cutting their losses when it gets to the court level.”
The bills being introduced to parliament will amend 180 existing acts and will, if passed, allow the amalgamation of the Petty Sessions Courts, Local Courts and Small Claims Tribunal into a single Magistrates’ Court that will be able to deal with both civil and criminal matters.
Other changes proposed in the bill include:
the allowing of direct deductions from the incomes of people who wilfully fail to pay court-ordered civil debts;
allowing police to issue minor offenders with an “on the spot” summons to attend court;
no longer requiring a defendant’s first appearance in court to be in person;
allowing courts to ban an accused person who chooses not to have a lawyer from directly cross-examining witnesses, including the alleged victim;
providing for the appointment of part-time magistrates to ensure highly qualified, talented applicants are not blocked from the appointment;
enabling electronic lodgment and service of court documents to provide greater efficiency and cost savings; and
introducing easier-to-under-stand and more modern language into court proceedings.
