If you agree
If you agree with a statement of claim, you have a number of options depending on whether the claim is about money or the recovery of goods.
Agree that you owe the money
If you agree that you owe the amount claimed, you can:
- negotiate with the plaintiff
- pay the full amount owed
- apply to pay by instalments.
You must act within 28 days of being served with the statement of claim. If you don't, the plaintiff can get a judgment against you and you may end up having to pay more.
Negotiate with the plaintiff
You could try to negotiate with the plaintiff. The plaintiff may agree to discontinue (withdraw) the claim if you come to an agreement. This means there will be no judgment against you.
An informal agreement with the plaintiff will not stop court action. If you come to an agreement with the plaintiff, you should put it in writing and let the court know.
For more information, see Settling the case.
Pay the full amount owed
The full amount owed will usually include any interest and the costs claimed by the plaintiff in the statement of claim. You can contact the plaintiff and ask them how they want you to pay, for example, cash, bank transfer, cheque. Make sure you get a receipt.
Once you have paid the full amount, you should file a notice of payment form at the court dealing with your matter. This is usually the same court where the statement of claim was filed unless your matter has been transferred to a different court or the court has ordered you to file documents at a different court. Once you have filed a notice of payment, the court will then stay (stop) all action in the case.
To file a notice of payment, you need one form:
You can get a copy of the form from:
You can also complete and file this form online using the
NSW Online Registry.
Sample: Sample notice of payment
Apply to pay by instalments
If you agree that you owe the full amount claimed, including interest and costs if they are claimed, but you cannot pay it all straight away, you can file an acknowledgement of liquidated claim form and at the same time file an application to pay by instalments.
If you file an acknowledgement of liquidated claim form, the court will make a judgment against you and once there is a judgment against you, the plaintiff can take action to enforce the judgment. If you are unsure if this is the best option for you, you should get legal advice.
You need two forms:
Form 35 – Acknowledgment of liquidated claim
Form 46 – Notice of motion to pay by instalments – individual, or
Form 47 – Notice of motion to pay by instalments – corporation (if the debt is against your company).
You can get a copy of the forms from:
You can also complete and file this form online using the
NSW Online Registry.
For more information, see Paying by instalments after getting a statement of claim.
Agree to return the goods
If you agree that you should return the goods that the plaintiff is claiming, you have these options:
Negotiate with the plaintiff
You could try to negotiate with the plaintiff. The plaintiff may agree to discontinue (withdraw) the claim if you come to an agreement. This means there will be no judgment against you.
For more information, see Settling the case.
Terms of settlement
If you reach an agreement with the plaintiff, you can set out the terms of your agreement in writing. The terms of settlement should state how the dispute will be resolved, for example, how much you will pay or what goods you will be returning, where and when. The terms should also be written to stop any further claims being made against you in relation to the same goods.
You should also ask the plaintiff to discontinue the case by asking the plaintiff to file a notice of discontinuance form with the court.
For more information, see Settling the case.
Consent judgment or order
If you and the plaintiff reach an agreement about how the case is to be finalised, you can ask the court to make orders based on your agreement.
If you have not filed a defence form, you will also need to file a notice of appearance which is a document that tells the court you are aware of the claim and want to take part in the case.
For more information, see Settling the case.