Unpaid Invoice? How to Recover It Through the Disputes Tribunal in NZ

An unpaid invoice is one of the most frustrating problems a small business faces — and one of the most misunderstood when it comes to which forum can actually help. The Disputes Tribunal can recover your money, but only if the customer genuinely disputes what they owe. If they simply haven't paid, you're in the wrong place.

The Dispute Requirement

This is the critical distinction most small business owners miss. The Disputes Tribunal requires a genuine dispute — a disagreement about liability, amount, or the quality of work. If your customer acknowledges the invoice is correct but hasn't paid due to cash flow problems, laziness, or evasion, there's no dispute. That's an undisputed debt, and the correct forum is the District Court. A quantified invoice may be pursued as a liquidated-demand claim; summary judgment may be available if the defendant has no defence.

Here's how to tell which applies:

Disputes Tribunal — the customer says:

• "I'm not paying because the work was substandard"
• "That's not what we agreed"
• "Your invoice is wrong — the price should be lower"
• "I never received the goods/services you're billing for"

District Court — the customer says (or effectively communicates by silence):

• "I know I owe it but I can't pay right now"
• "The cheque is in the mail" (repeatedly)
• Nothing at all after acknowledging the debt

If you file at the Disputes Tribunal for an undisputed debt, the Referee can dismiss the claim for lack of jurisdiction. You've then wasted the filing fee and the time, and you still need to go to the District Court.

If the Customer Does Not Respond

What if the customer simply ignores your invoices and demand letter? Silence alone does not automatically turn an unpaid invoice into a genuine dispute or put it in Disputes Tribunal territory. A demand letter documents that you tried to resolve the issue, but the Tribunal still decides whether a genuine dispute exists.

If the customer responds by disputing the amount, liability, or quality of the work, keep that response as evidence of the disagreement.

Preparing Your Claim

Your evidence needs to prove three things: that the work was done (or goods delivered), that the agreed price was what you invoiced, and that payment hasn't been received.

The agreement. Whatever formed the contract — a signed quote, a purchase order, an email chain confirming the scope and price, terms and conditions attached to your invoice. If the agreement was verbal, write down what was said, when, and any witnesses.

Proof of delivery. For services: progress photos, completion certificates, sign-off emails, delivery notes. For goods: courier tracking, delivery receipts, or the customer's written acknowledgment of receipt.

The invoice itself. The original invoice with the amount, due date, and payment terms. If you sent reminder invoices, include those too — they show a pattern of non-payment.

Your demand letter and proof of delivery. The formal demand you sent before filing, with tracked-post confirmation or email read receipt.

Payment records. Bank statements showing no payment received. If partial payment was made, your claim is for the outstanding balance only.

Filing Fees vs Claim Value

For small invoices, check whether the filing fee makes financial sense:

The filing fee is non-refundable, but the Referee can order the losing party to reimburse it as part of the final order.

For invoices under $500, the $62 filing fee represents a significant percentage. Consider whether a strongly worded demand letter — making clear that you will file — might be enough to prompt payment before you spend the fee.

The Six-Year Clock

Under the Limitation Act 2010, a debtor can generally raise a limitation defence if a money claim is filed at least six years after the act or omission it is based on — for an unpaid invoice, usually the missed due date. The Act includes exceptions and circumstances that can change the period, so don't assume the date if the debt was acknowledged or part-paid.

What the Tribunal Can Order

If you prove your claim, the Referee can order the respondent to pay the invoice amount plus (at the Referee's discretion) your filing fee. The Tribunal cannot award legal costs or compensation for your time spent preparing the claim.

If the respondent ignores the order, you can apply for District Court civil enforcement — for example, a warrant to seize property, an attachment order, or a financial assessment hearing. The NZ Disputes Tribunal filing guide covers the full process from demand letter through enforcement, including tools for tracking invoice disputes and deadlines.

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