One of the most frustrating positions to be in is when you’re owed money, whether it be an individual or a business, for a small amount or a large amount, for goods sold and delivered, services rendered or anything really, it’s never a fun position to be in. This is exacerbated by the fact that, most would argue, in this day and age the cost of litigation has become prohibitive, especially for persons pursuing claims in their individual capacities and SMEs. So, what do you do, where do you start?

As a general rule, claims under R20 000.00 can be recovered in the Small Claims Courts. These are located at Magistrates Courts and the Magistrates Courts have dedicated personal who will assist you, step-by-step, to pursue your claim. Attorneys are prohibited from appearing in these Courts, but they really are not necessary if you follow the advice of the clerks of the Court. The justice department also provides a step-by-step guide at this website https://www.justice.gov.za/scc/scc.htm. 

Claims upwards of R20 000.00 and not exceeding R399 999.99 can be heard by the Magistrates and Regional Courts. Depending on the complexity of the case and the quantum involved, a junior attorney should be capable of assisting you through this process and drafting the necessary papers. Your matter may require the involvement of an Advocate, especially if it is complex, but as a general rule Counsel is not required in the Magistrates and Regional Courts.

The High Courts of South Africa have jurisdiction to hear disputes of any quantum, although as a general rule you will only launch your matters in these Courts if the quantum of your dispute exceeds R400 000.00. It is sound practice to engage the services of an Advocate to assist in these disputes, especially if the matter is complex.

In any of the Courts, as a general rule, jurisdiction is founded where your debtor is based, alternatively where “the whole cause of action” arose. In our view it is generally safest to simply launch your matter out of the Court where your debtor is located, ie. a registered or domicilium address.

As suggested above, in this day and age it is commercially complicated to pursue matters through the Courts because one’s legal fees can quickly outweigh the quantum in dispute, especially in the Magistrates and Regional Courts. Rather every effort should be made to resolve the dispute between the parties amicably. This could include, but not be limited to holding round table settlement discussions, the concluding of a settlement agreement between the parties or an acknowledgement of debt. Certainly, in the High Courts, in terms of Rule 41A of the High Court Rules, it is now a requirement for the parties, prior to proceeding with their litigation, to indicate to the Courts if efforts to mediate the dispute, have taken place.

Choosing the right attorney in the context of the above information can be hard. The Litigation Department at Shepstone and Wylie Attorneys pride themselves on assisting clients to pursue all avenues before proceeding with litigation through the Courts in the most cost effective and efficient manner for you. If you’re based in Johannesburg and in the event that you need assistance at resolving your dispute in a commercially sound, efficient and cost-effective manner please do not hesitate to contact Jennifer Woker at 011 290 2504 / woker@wylie.co.za.