When a dispute over money or goods arises, one of the first practical questions is where it can be resolved. In Singapore, smaller everyday disputes may be suitable for the Small Claims Tribunals (SCT), while matters outside the SCT’s jurisdiction are dealt with in the civil courts. Choosing the right forum affects cost, time, procedure and the availability of legal representations.
At a glance:
- The Small Claims Tribunals handle certain claims up to S$20,000 (or up to S$30,000 if all parties sign a Memorandum of Consent).
- The SCT deals with specific dispute types, such as disputes relating to contracts for the sale of goods, the provision of services, certain property-damage claims, and residential tenancy agreements of no more than two years.
- Subject to the exceptions and the nature of the relief sought, civil claims of up to S$60,000 are generally within the Magistrate’s Court’s jurisdiction; claims of up to S$250,000 are generally within the District Court’s jurisdiction; and larger claims are generally brought in the General Division of the High Court.
- Parties generally present their own cases at the SCT, and lawyers cannot represent parties there.
What the Small Claims Tribunals are designed for
The SCT was set up to provide a quicker, more affordable way to resolve certain categories of disputes within their jurisdiction.. Proceedings conducted in a relatively informal manner and follow a judge-led approach. Cases generally begin with a consultation before the Registrar, which seeks to help the parties reach an agreed settlement.
The SCT can only hear certain categories of claims. Common examples include disputes about goods that were bought, services that were paid for, and certain landlord and tenancy matters. There are also time limits,a claim generally has to be filed within two years from the date the cause of action accrued. The claim must also fall within the SCT’s monetary limits. A claimant whose claim exceeds S$20,000 may, in some circumstances, abandon the excess to proceed in the SCT.
Where the civil courts come in
Not every dispute fits within the SCT’s limits or categories. A claim may belong in the civil courts if:
- the amount involved exceeds the SCT’s monetary limit and the parties have not agreed to the extended limit;
- the subject matter falls outside the categories the SCT can hear;
- The SCT’s two-year filing period has expired; or
- the disputes required procedures or remedies not available in the SCT, such as obtaining an injunction or conducting pre-trial discovery, or involved a claim outside the SCT’s jurisdiction, such as a defamation claim…
Within the civil court system, the forum depends largely on the value of the claim, the remedy sought, the subject matter and any applicable statutory rules.. Civil proceedings are more structured than at the SCT proceedings and depending on the type of case, they may begin with originating claims. Parties may be legally represented in civil court proceedings.
How to think about the right forum
Choosing where to bring a dispute is not only about the dollar figure. It can be useful to consider:
- Value: Is the claim within the SCT limits, or above them?
- Type of dispute: Does it fall within a category the SCT can hear?
- Time Limit: Is the SCT claim being made within two years from the date the cause of action accrued?
- Complexity: Is the dispute more appropriately resolved in the civil courts because of the complexity of the legal or factual issues, the evidence involved, or the number of parties?
- Time and cost: The SCT is designed to offer a more streamlined process for specified small claims. Civil proceedings may provide a fuller process where that is needed, but can involve greater time and costs.
A note on resolving disputes early
Whichever forum a dispute might eventually reach, many matters are resolved before a hearing, through negotiation, a letter setting out the issues, or mediation. Understanding the options early can help you assess the most proportionate way forward for the dispute you are facing.
Key takeaways
The Small Claims Tribunals and the civil courts serve different purposes. The SCT offers an accessible route for specified claims up to S$20,000 (or S$30,000 by consent), while the civil courts handle claims outside the SCT’s jurisdiction through a more formal process. Identifying which forum fits your situation is an important first step.
This article is for general information only and does not constitute legal advice. Monetary limits and procedures may change over time. For advice on your particular dispute, please consult a qualified civil litigation lawyer in Singapore.
Frequently Asked Questions
- Can debt collectors contact my family or employer?
No. Debt collectors cannot publish information about your debt online. This may be considered harassment under the Protection from Harassment Act 2014.
- What should I do if I can’t afford to pay the full amount?
Contact the creditor directly and propose a realistic payment plan based on what you can afford. Most creditors prefer receiving partial payments over nothing at all.
- Can I be arrested for not paying my debts?
No. In Singapore, you cannot be arrested simply for owing money on regular debts like credit cards or personal loans. Debt is a civil matter, not a criminal one. The case may be different if an order of Court has been made against you in relation to a debt. Non-compliance in that scenario may constitute contempt of Court which may attract fine and/or imprisonment.
- How do I know if a debt collector is legitimate?
Ask for written verification, including the original creditor’s name, debt amount, and a breakdown of charges. Licensed debt collectors must provide this information upon request. - Does ignoring debt collectors make the debt go away?
No. Ignoring the situation doesn’t resolve it and may lead to legal action. It’s better to acknowledge the debt and work on a solution, even if you can’t pay immediately.
