Can the NZ Disputes Tribunal Award Costs? What Respondents Should Know

The Short Answer: No General Costs Awards

The Disputes Tribunal in New Zealand does not generally award legal costs or reimburse each party's preparation expenses. Each party ordinarily bears their own expenses — travel to the hearing, time off work, photocopying evidence, expert reports, and other preparation costs. However, the referee may order the unsuccessful party to reimburse the successful applicant's Tribunal filing fee, which is currently $62 to $496 depending on the claim value. This is a deliberate feature of the Tribunal's design: keeping the process accessible by limiting the risk that losing exposes you to the other side's preparation costs on top of any order against you.

This differs from the District Court, where the losing party can be ordered to contribute to the winner's legal costs. At the Disputes Tribunal, legal fees and other preparation costs are generally not recoverable; filing-fee reimbursement is a separate exception.

What This Means for Respondents

As a respondent, the no-costs rule has practical implications for how you prepare your case:

Expert reports are at your own expense. If you commission an independent assessment — a builder's report on workmanship quality, a mechanic's inspection of a vehicle, a valuer's estimate of property damage — you pay for it whether you win or not. Factor this into your cost-benefit analysis when deciding how much to invest in your defence.

Travel costs aren't reimbursed. If the hearing is at a Tribunal office in another city (hearings are usually held at the registry nearest to the claimant's address), your travel and accommodation costs are yours. If travelling is genuinely impractical, apply for a remote hearing by phone or video instead.

Lost wages aren't compensated. Taking time off work to attend the hearing and prepare your evidence is a cost you bear regardless of the outcome.

No penalty for the claimant filing a weak case. Even if the claim is dismissed entirely — the referee finds the claimant had no valid basis — the Tribunal generally won't order the claimant to reimburse your preparation costs. It may separately order reimbursement of the successful applicant's Tribunal filing fee. This can feel unjust when a weak claim forces you to spend time and money defending yourself, but it's the trade-off of an accessible forum.

Can You Claim Costs as Part of Your Counterclaim?

If you file a counterclaim, you can claim actual financial losses the claimant caused you — but these aren't "costs" in the legal sense. They're damages arising from the dispute itself.

For example, if a contractor's faulty work forced you to hire another contractor to fix it, the cost of remediation is a legitimate claim. If a customer's faulty goods damaged other property you own, those repair costs are claimable. But the cost of preparing for the Tribunal hearing itself — photocopying, expert reports, travel — cannot be included in a counterclaim as damages.

The Exception: District Court Appeals

If the case goes to appeal in the District Court (within 20 working days, $275 filing fee), the District Court has the power to award costs. The costs regime at appeal is governed by the District Court Rules 2014, and the judge can order the unsuccessful party to contribute to the other side's reasonable costs. This is one reason appeals carry more financial risk than the original Tribunal hearing.

Practical Implications for Your Defence Strategy

The no-costs rule means you should be strategic about what you spend:

• Keep expert reports proportionate. A $500 expert report to defend a $1,200 claim may not be worth it. Consider whether photographs, receipts, and your own factual account are sufficient.
• Use free resources first. Community Law Centres provide free legal information. Citizens Advice Bureau can help you understand the process. Don't pay for advice you can get for nothing.
• Settle if the maths works. If defending the claim will cost you more in time, travel, and preparation than the settlement amount, a pre-hearing settlement is often the rational choice — even if you believe you're in the right.
• Request a phone hearing. If the hearing location is inconvenient, ask the Tribunal for a remote hearing. This saves travel costs and time off work.

The NZ Disputes Tribunal Response Guide helps respondents weigh these practical trade-offs with a response decision flowchart and a hearing preparation checklist, so you can focus your time and money where they'll have the most impact.

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