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Served with a Claim and Statement of Claim? What to do next.

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What to Do If You Receive a Claim and Statement of Claim

If you have been served with a Claim and Statement of Claim, it is essential to understand the steps you need to take to protect you interests and mount an effective response.

Below are comprehensive steps outlining what to do next.

1. Contact Your Solicitor
   • The first and most important step is to seek legal advice. Engaging a solicitor early on allows you to formulate a strong strategy tailored to your case. A lawyer will guide you through the process and help you make informed decisions about your next steps. Some steps that may be employed depending on your specific circumstances are as follows.
2. Confirm the Defence Deadline
   • It is vital to know when your Defence is due. Typically, you have 28 days from the date of service to file your Defence. However, you should confirm this date with the opposing party and ensure they agree not to seek a Default Judgement before then. In some cases, you may be able to negotiate an extension, but any such agreement should be documented in writing. If no extension is agreed upon, ensure you meet the 28-day deadline to avoid any adverse consequences.
3. If You Can’t Meet the Deadline
   • If you are unable to file a full Defence within the 28-day period, you may consider filing a Conditional Notice of Intention to Defend or holding defense that includes non-admissions. This will give you additional time to amend the Defence later. Be cautious about making admissions in your response, as the Court’s permission is required to withdraw any admission. Filing a Conditional Notice of Intention to Defend will extend your filing deadline by an additional 14 days but should only be filed if for example there is a jurisdictional issue to be determined or the Claim should be set aside.
4. Conduct Thorough Searches
   • Conduct necessary searches, such as ASIC, ABN lookups, QBCC searches, title searches, and even Google searches. These searches are essential not only for understanding the details of the claim but also for addressing potential security for costs issues.
5. Request Documents and Particulars
   • Under Rule 222 of the Uniform Civil Procedure Rules 1999 (UCPR), you are entitled to request copies of all documents referenced in the Statement of Claim. This request can be made with a simple letter. Additionally, you can ask for further particulars of the claim, such as whether the contract was written, oral, or formed by conduct (or a combination of these). Be sure to submit this request on a court-headed document. Refer to Rules 150 and 157 of the UCPR for further details. Additionally, make sure to provide all documents to your solicitor as soon as possible for review.
6. If the Statement of Claim is Not Properly Pleaded
   • If you believe the Statement of Claim is not properly pleased, you may want to send a Rule 444 (UCPR) letter, notifying the other side that you intend to seek to strike out parts (or all) of the claim under Rule 171 of the UCPR due to insufficient pleading.
7. Set Up a Potential Security for Costs Application
   • Delay can influence the likelihood of obtaining an order for security for costs. Before filing any Defence, consider writing to the other side to express concerns that their client may not be able to pay your costs. in this litter, provide detailed estimates of your costs on a standard basis up to the first day of trial, and request evidence of the plaintiff company’s ability to pay those costs.
8. Consider Whether You Should Make a Counterclaim
   • If you believe you have a legitimate counterclaim, it’s important to consider filing it along with your Defence. If you fail to file the Counterclaim at this stage, you may need the Court’s permission to file it later (Rule 178 of the UCPR). A counterclaim can be made against the current plaintiff or a third part.
9. When Your Claim Has No Prospects
   • If the claim lacks merit – such as when it is statute-barred – you may, in rare cases, file a Conditional Notice of Intention to Defend. Following this, you can file an application and affidavit seeking to have the claim set aside or the proceedings permanently stayed under Rule 16 of the UCPR.
10. Prospects of Your Case
    • It is often difficult to assess the prospects of your case until you file your Defence and obtain disclosure of documents. At this early stage, it is challenging to predict the outcome, but a thorough review of the facts, documents, and legal arguments can provide more clarity as the process moves forward. We can advise you if you are involved in Court proceedings.

Focused on Results

When served with a Claim and Statement of Claim, navigating the next steps can be complex. That’s why it’s crucial to seek legal advice early to ensure you understand your options and take the right steps to protect your interests. With the right strategy and timely actions, you can increase your chances of a favourable outcome.

Aitken Whyte Lawyers have extensive experience in successfully defending and resolving claims and handling Statements of Claim. Contact our Brisbane office if you wish to seek representation from our lawyers.

Office Location and Contact Details

Brisbane

Aitken Whyte Lawyers Brisbane
2/414 Upper Roma Street
Brisbane QLD 4000

Ph: 07 3229 4459
Fax: +617 3211 9311
E: enquiries@awbrisbanelawyers.com.au