Increase in the Jurisdictional Limit of the District Court of New South Wales

For all proceedings filed in the District Court on or after 16 December 2002, the NSW District Court’s jurisdictional limit has increased from $750,000.00 to $1,250,000.00. The limit applies to the compensation award to a Plaintiff, and does not apply to any ‘costs’ which are claimed by a Plaintiff.

We discussed the details of the way the jurisdicitonal limit works in an earlier article which can be found here: https://www.shawbunner.com.au/blog/what-is-the-jurisdictional-limit-of-the-district-court-of-nsw

The change was brought about at the end of 2022 with the District Court Amendment Act 2022 (NSW).

The relevance of this change to Plaintiff’s is that they can commence their claim in the District Court if their damages are likely to exceed $750,000.00 (but be less than $1.25 million), whereas previously, they would need to file proceedings in the Supreme Court. There are benefits to filing proceedings in the District Court as opposed to the Supreme Court; generally a client’s case will be heard sooner and costs are typically less than those incurred in the Supreme Court.

Notwithstanding the increase, it is still important for a Plaintiff to consider the most appropriate Court in which to commence and action proceedings, and much thought given to the potential value of a claim in damages prior to starting proceedings.

There are costs rulings applicable, specifically Rule 42.34 of the Uniform Civil Procedure Rules 2005 (NSW) - and this remains unchanged. Under this Rule, if a Plaintiff files proceedings in the Supreme Court and is successful, yet the damages awarded as less than $500,000.00 - the Plaintiff is not entitled to a costs order.

It is important to get expert legal advice to determine the value of a Plaintiff’s case and the most appropriate Court to commence proceedings in.