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manicminer
21-10-2010, 10:14 PM
What happens if I take an Incorporated Society to the Small Claims Court (now called Disputes Tribunal) and they refuse to pay in the event a judgment is made against them?

wainuitech
21-10-2010, 10:42 PM
Have a look at the Offical document - scroll down the bottom of Questions / answers (http://www.justice.govt.nz/publications/global-publications/d/disputes-tribunal-2013-general-information-english-jusdt0016) -- Basically
What happens if the order is not complied with?

You may apply to have the order enforced. Contact the Collections Unit at your local District Court.

manicminer
21-10-2010, 10:53 PM
Have a look at the Offical document - scroll down the bottom of Questions / answers (http://www.justice.govt.nz/publications/global-publications/d/disputes-tribunal-2013-general-information-english-jusdt0016) -- Basically

Sure - I get that but in an Incorporated Society, none of the members are liable for debts incurred. If the Society doesn't have any assets other than cash in the bank (it's a non-profit group), how can a debt collection agency deal with that?

edit...ok found text...."....compulsory deductions from income or a bank account"

pctek
22-10-2010, 09:35 AM
edit...ok found text...."....compulsory deductions from income or a bank account"

How it really works:
Fill out form for baliffs to go extract money/goods. You have to list money/goods they have.

When that fials, you then have to go to another actual court hearing where the debtor has to show evidence on income, assests and expenses.
Some agreement is made for payments. Of course, the debtor can not bother turning up. Then you have to complete more forms to get him to be made to turn up.
And on and on and on and on.

Yours is worse if it isn't even one individual........

legod
22-10-2010, 09:39 AM
Small claims court is a hassle. I was done once...still fuming over it.

manicminer
22-10-2010, 09:43 AM
Ok - so what if they were to dispose of the cash in the bank prior to the small claims court hearing, leaving them with nothing?

Winston001
22-10-2010, 12:21 PM
Nothing wrong with the Disputes Tribunal. It is quick, rough and ready by which I mean technical legal arguments don't go far.

If you obtain a judgement against an incorporated party, you then need to try and obtain a charging order against the bank account - assuming there are no assets to seize.

Alternatively you can apply to have the organisation wound up. That will cost you but usually gets their attention - unless there are no assets in which case......no luck.

If they empty the bank account before judgement, you have a problem. You'd need to apply to the Court to trace the money and show that it wasn't legitimately spent.

I can recall one organisation which lost an employment dispute to the tune of $27,000. Unfortunately there were no assets so the claimant got nothing. A hollow victory.

The only way you can know for certain is to proceed. Simple enough and there is a chance you'll succeed.

prefect
22-10-2010, 12:51 PM
Nothing wrong with the Disputes Tribunal. It is quick, rough and ready by which I mean technical legal arguments don't go far.

If you obtain a judgement against an incorporated party, you then need to try and obtain a charging order against the bank account - assuming there are no assets to seize.

Alternatively you can apply to have the organisation wound up. That will cost you but usually gets their attention - unless there are no assets in which case......no luck.

If they empty the bank account before judgement, you have a problem. You'd need to apply to the Court to trace the money and show that it wasn't legitimately spent.

I can recall one organisation which lost an employment dispute to the tune of $27,000. Unfortunately there were no assets so the claimant got nothing. A hollow victory.

The only way you can know for certain is to proceed. Simple enough and there is a chance you'll succeed.

Very good sound advice

pctek
22-10-2010, 03:31 PM
[QUOTE=Winston001;959952]Nothing wrong with the Disputes Tribunal. QUOTE]

Not at all.
But they don't chase your money for you.
You have to do all the hard work.
Even lawyers don't want to know unless you have loads of money - and if you did, it wouldn't be such a big deal chasing these guys up in the first place would it?

Cicero
22-10-2010, 03:44 PM
[QUOTE=Winston001;959952]Nothing wrong with the Disputes Tribunal. QUOTE]

Not at all.
But they don't chase your money for you.
You have to do all the hard work.
Even lawyers don't want to know unless you have loads of money - and if you did, it wouldn't be such a big deal chasing these guys up in the first place would it?

Quite right PC, if the judgement is in your favour,there should be more teeth available for you to recover said finding.

Paul.Cov
24-10-2010, 02:24 PM
I'm involved in a number of small Incorporated and Charitable groups. I can tell you that they can at times be VERY slow payers. They often rely on volunteers, may need 2 signatories to sign your cheque, and may only meet at very intermitent intervals. If signatories are sick or overseas at any time there can be further delays in getting a payment done.

Depending on the organisation, I'd ask that you exercise some patience before causing them grief about your payment. Try a phone call to them... if you can find a number. A phone conversation can't be ignored like an email or a paper invoice, and may give you a simple answer for why your issue has not yet been resolved.

Disregard all this if you're dealing with a big organisation.