New private statutory adjudication process for civil disputes
The Ministry of Justice welcomes public feedback on its proposal for a new statutory adjudication framework that will 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 is that the framework is 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 need your feedback on the proposals in this consultation document to help us to prepare advice for the Government on the detailed proposals for an Act.
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]
How can I participate in the consultation?
Fast Dispute Resolution – Consultation on a new statutory adjudication framework
To make a submission, visit our online Citizen Space consultation hub Ministry of Justice - Citizen Space(external link) or you can make your submission by email to civillaw@justice.govt.nz or by post to:
Civil Law Policy Team
Ministry of Justice - National Office
SX 10088
Wellington
In making a submission, please note that we are subject to both the Privacy Act 2020 and the Official Information Act 1982. There is more information on the Adjudication Act public consultation privacy information page.
Join our live webinar
The Ministry is hosting an information webinar on 22 August from 1.30pm – 3pm. Please email civillaw@justice.govt.nz to indicate your interest. We will circulate a link shortly.