Debt Recovery Plans in the Small Claims Tribunals. Gilbert Low

Debt Recovery Plans in the Small Claims Tribunals Gilbert Low

Debt Recovery Plans in the Small Claims Tribunals 1. Overview of the Small Claims Tribunals 2. Present Enforcement Situation 3. Debt Recovery Plans 4. Results 5. Future Plans

Small Claims Tribunals Established on 1 February 1985 Part of the Subordinate Courts of Singapore Speedy and inexpensive machinery to handle small claims not exceeding SGD10,000.

Part of the Subordinate Courts of Singapore Established on 1 Feb 1985 Small Claims Tribunals Speedy and inexpensive machinery to handle small claims not exceeding SGD 10,000

Jurisdiction Contractual disputes relating to sale of goods or provision of services. Any claim in tort relating to property damage but excluding motor vehicle damage claims. Claims must be lodged within 1 year from their accrual.

Tribunal Proceedings Objective: To achieve settlement between parties. Proceedings are informal Tribunals not bound by rules of evidence but must apply the law correctly.

Tribunal Proceedings 1. Before Registrar for settlement. Success! No settlement 2. Goes before Referee for hearing

Orders Tribunal May Make Work Order Monetary Order Installments may be granted. Respondent usually given a time frame to pay from the date of the Order. Costs not allowed except for disbursements such as filing fee and transport fee.

Nature of Monetary Orders from Small Claims Tribunals Enforceable like any other Subordinate Court writ. Filing of writ of seizure and sale needed. Filing of a separate original summons before civil courts needed for examination of debtor s financial standing.

Ramifications Successful claimants have to apply at the bailiff's office to enforce orders. Break in continuity in the judicial process.

Ramifications 20% of writs filed at the bailiff's office originated from the SCT. Annual increase in number of claims. 40000 35000 30000 25000 36610 20000 15000 33768 10000 5000 0 3788 1985 2001 2002

A Centralised Single Point of Contact : Bailiff's Section @SCT Bailiff's Section set up at Small Claims Tribunals premises on 1 July 2002. Handles writs of seizure and sale papers for all orders from the Tribunals. Provides a continuum of the judicial process. Enhancement in public service.

Practical Considerations in Bailiff s Process Filing fees: SGD105 for each writ of seizure and sale. Bailiff s fees: SGD300 deposit required. Auctioneer s fees: Subject to the value of goods seized and auctioned. Increase in costs from execution process. Decrease in auction proceeds.

Study on SCT Writs of Execution Total number of writs of seizure & sale lodged with Bailiff's Section @ SCT: 659 390 cases resolved before fixing of execution dates 195 cases resolved after execution but before auction 39 cases settled at execution 8 cases settled at SCT 27 cases disposed at auction Costs from filing fees wasted in majority of cases. Individuals, sole-proprietors and partnerships form majority of writ cases.

Debt Recovery Plans @SCT Bringing Parties To An Agreed Settlement At Post-Adjudication Stage Financial counseling (wef 1 April 2003) Consensual in nature Target group: Individuals & sole proprietors Will be extended to cases involving partnerships, companies and bulk users

Debt Recovery Plans @SCT Process Counseling session Debt recovery plan agreed upon Telephone reminder to respondent Respondent to revert within one week Letter to respondent Date given Counseling offered

Letter to respondent includes: Standard form requesting for: Breakdown in financial position Marital status Employment status Monthly salary Assets Dependants Any other court proceedings Any unusual expenses Supporting income & expenses document

Some Considerations 1. Installments not to exceed 6 months unless parties agree. 2. Number of sessions limited to two to prevent delaying tactics. 3. Confidentiality of information disclosed during counseling. 4. No part payment of debt to preserve sanctity of order. (Out of court settlement for parties agreeing to part payment)

Preliminary Results After Implementation Months / No. of cases April May June Cases fixed 6 4 6 (pending) Successful 2 3 1 Unsuccessful 4 1 -

Benefits of Plan Costs savings. Win-win philosophy achieved between parties. Tribunals playing reconciliatory as opposed to adversarial role in litigation. Access to Justice enhanced.

Future Plans Debt recovery counseling will be extended to our Civil Courts by end of this year. To act as a viable alternative to the traditional enforcement process.

For Further Information 1. Subordinate Courts www.subcourts.gov.sg 2. Small Claims Tribunals www.smallclaims.gov.sg 3. Singapore Government website www.gov.sg 4. Attorney-General s Chambers www.agc.gov.sg All statutes & subsidiary legislation of Singapore statutes.agc.gov.sg 5. Caselaw (by subscription) www.lawnet.com.sg

Thank you for your kind attention.