I've Been Sued — What Happens Next in NSW?

Received a Statement of Claim in NSW? Here's what you need to know about your deadline, your options and what to do next.

Being served with court documents can be stressful, particularly if you have never been involved in litigation before.

If you have received a Statement of Claim in NSW, don't ignore it. The document sets out the other party's allegations against you and what they are asking the court to order.

Being sued does not mean the other party will automatically win. Depending on the circumstances, you may be able to defend the claim, negotiate a settlement, seek further information or bring a cross-claim.

What should I do first?

If you have been served with a Statement of Claim:

• Read the documents carefully.
• Check when you were served.
• Identify the deadline for responding.
• Gather relevant contracts, emails, messages and other documents.
• Avoid making unnecessary admissions to the other party.
• Obtain legal advice as soon as possible.

The earlier you understand the claim, the more options you are likely to have.

How long do I have to respond?

In NSW, the general time limit for filing a Defence is 28 days after service of the Statement of Claim, unless the court directs otherwise.

This deadline is important. If you fail to respond, the plaintiff may be able to seek default judgment against you.

If you have already missed the deadline, don't assume that nothing can be done. The appropriate response will depend on what has happened in the proceedings and whether judgment has already been entered.

Can I defend the claim?

Yes. If you dispute some or all of the allegations, you may be able to file a Defence.

A Defence should address the allegations made by the plaintiff and set out the basis of your position. Simply denying everything may not be enough.

You should consider:

• whether the alleged facts are correct;
• whether the amount claimed is accurate;
• whether there was a valid agreement;
• whether the agreement was breached;
• what evidence supports your position; and
• whether you have any claim against the plaintiff.

Can I make a claim against the person who sued me?

Potentially.

If you believe the plaintiff owes you money or has itself caused you loss, you may be able to bring a cross-claim as part of the proceedings.

For example, a plaintiff may claim that you owe $100,000 under a contract, while you believe the plaintiff's own breach has caused you $50,000 in losses.

Whether a cross-claim is appropriate will depend on the facts and the applicable procedural rules.

Do I have to go to trial?

Not necessarily.

Many disputes are resolved before a final hearing through negotiation or settlement.

Depending on the circumstances, it may be appropriate to negotiate an outcome that resolves the dispute without the time and expense of a trial.

However, settlement should generally be considered alongside the strength of your case, the available evidence, potential legal costs and the outcome you are seeking.

What documents should I give my lawyer?

Start gathering anything relevant to the dispute, including:

• contracts and agreements;
• invoices and receipts;
• emails and correspondence;
• text messages;
• photographs;
• quotations and purchase orders;
• financial records; and
• the court documents you have received.

Don't delete potentially relevant information simply because you think it may be unhelpful. Your lawyer needs to understand the circumstances of the dispute as a whole.

What should I do now?

If you have been served with a Statement of Claim, don't wait until the deadline approaches.

The first step is to understand what is being claimed, assess the evidence and determine your available options.

ACLA Lawyers assists clients with civil and commercial disputes and court proceedings, including defending claims, negotiating settlements and pursuing appropriate claims where required.

If you have been sued in NSW, speak with ACLA Lawyers about your situation and the options available to you.

Frequently Asked Questions

How long do I have to respond to a Statement of Claim in NSW?

Generally, 28 days after service, unless the court directs otherwise.

What happens if I ignore a Statement of Claim?

The plaintiff may be able to seek default judgment against you.

Can I defend a claim if I disagree with it?

Yes. Depending on the circumstances, you may be able to file a Defence.

Can I make my own claim against the plaintiff?

Potentially. A cross-claim may be available depending on the circumstances.

Can I settle the case before trial?

Yes. Many disputes are resolved through negotiation or settlement before a final hearing.