New private statutory adjudication process for civil disputes
Between 7 August and 19 September 2025, the Ministry of Justice sought public feedback on its proposal for a new statutory adjudication framework. This framework would give businesses a fast-track way to resolve civil disputes quickly and privately, as an alternative to filing a claim in court or going to arbitration.
The proposal was that the framework would be voluntary, so both parties to a dispute would need to agree to participate. An adjudicator’s determination would be enforceable; however, parties would retain the ability to litigate the dispute in the courts from scratch. The legislation would set strict, and speedy, timeframes for the adjudication to be completed.
Our civil law systems underpin New Zealanders’ trust and confidence in each other. Civil law governs relationships between people rather than between the state and its citizens. The system provides a range of ways for people to resolve their disputes over such matters as contracts, unpaid debts, torts (where one-party wrongs another), or property disputes.
Civil disputes can take a long time to resolve – both in and out of the courts. In the formal justice system, the median time for civil claims to be disposed in the Disputes Tribunal is about three months, in the District Court it is nine months, and 14 months in the High Court. Out of court methods are also slow, with more than half of all civil business issues taking longer than a year to resolve privately. Private arbitration is now taking an average of 11 months.
In business, prolonged or costly legal disputes tie up resources that might otherwise be used for growth, innovation, or job creation.
The Ministry has been looking at opportunities to fill gaps in the private dispute resolution market. Strengthening alternative avenues and providing faster out of court options will save these businesses a lot of time and money and contribute to wider economic productivity. It could also free up court time, which will allow other cases to be heard faster.
An Adjudication Act with broad application to all businesses would be a world first. We sought public feedback on the proposals in our consultation document to help us to prepare advice for the Government.
Discussion document
Cabinet papers and related information
Cabinet paper and minutes: Proactive release - Consultation on a new Adjudication Act for New Zealand [PDF, 1.1 MB]
Regulatory Impact Assessment: Consultation document proposing a new Adjudication Act [PDF, 2.5 MB]
Submissions have now closed
Submissions closed at midnight on 19 September 2025. The Ministry of Justice thanks everyone who made a submission.