Small Claims Tribunals or court: which is right for your claim?

What the Small Claims Tribunals are

The Small Claims Tribunals are part of the State Courts. They were set up to resolve everyday disputes quickly and cheaply. Hearings are informal, the strict rules of evidence are relaxed, and claims are filed online through the Community Justice and Tribunals System.

Which claims qualify

The tribunals can only hear the types of claim set out in the Small Claims Tribunals Act. These include:

• Contracts for the sale of goods.
• Contracts for services, such as renovation works and repairs.
• Damage to property, other than damage from motor accidents.
• Residential tenancy disputes where the lease is for two years or less.
• Unfair practice claims under the Consumer Protection (Fair Trading) Act.

The money limit and the time limit

The standard claim limit is S$20,000. It can rise to S$30,000 if both parties agree and file a Memorandum of Consent. If your claim is slightly above the limit, you may choose to give up the excess and claim within it, but you cannot split one dispute into several smaller claims.

A claim must be filed within two years of the date it arose. This is much shorter than the time usually allowed for contract claims in court, so it is worth checking dates early.

These limits have applied since November 2019. Some older guides still give lower figures of S$10,000 and one year, which are out of date.

No lawyers at the hearing

Lawyers are not allowed to represent parties before the tribunals. Each side presents its own case, and a company sends one of its own officers or employees.

That does not mean legal help is pointless. A lawyer can advise before you file on whether the tribunal is the right place for your claim, help you organise your evidence, or send a letter of demand that resolves the matter without filing. If the other side does not comply with a tribunal order, it has to be enforced through the courts, which is another stage where advice may help.

How a claim runs

After a claim is filed and served, the parties attend a consultation, where a registrar tries to help them reach a settlement. If the matter does not settle, it goes to a hearing before a tribunal magistrate, who makes an order. Bring the original documents and be ready to explain clearly what was agreed, what happened and what you are claiming.

When court is the better route

A claim will need to go to court instead where, for example:

• the amount is above S$20,000 and the other side will not consent to the higher limit, or above S$30,000;
• more than two years have passed since the claim arose;
• the dispute is not a type the tribunals can hear, such as a commercial or industrial lease dispute or an employment dispute; or
• the other party is outside Singapore and cannot be served here.

Getting advice

If your claim sits close to the limits, or it is unclear which forum fits, a lawyer can review the facts and the documents and explain the options, including what a court claim would involve.