The NSW court system: Local, District and Supreme Courts explained

If you are facing a legal matter in NSW, one of the first questions is which court it belongs in. The answer affects the cost, the formality, and often the outcome. The NSW court system is a hierarchy, and knowing how it fits together helps you understand where your matter sits. This guide explains it in plain English.

A hierarchy of courts

The NSW courts are arranged as a hierarchy, from the Local Court at the base, through the District Court, to the Supreme Court at the top, with appeal courts above them. Each court has its own jurisdiction, meaning the kinds of matters and the amounts it can deal with. Broadly, the more serious or higher-value the matter, the higher up the hierarchy it sits.

Alongside the courts sits NCAT, the NSW Civil and Administrative Tribunal, which is not a court but handles many everyday civil matters such as tenancy, retail leasing, building disputes, and consumer claims. We come to NCAT below.

The Local Court

The Local Court is where most matters start and where the great majority finish. It is presided over by Magistrates, and it handles both civil and criminal work.

On the civil side, the Local Court hears claims up to $100,000. Claims up to $20,000 go to its Small Claims Division, which is quick and informal and designed to be used without a lawyer, and claims from $20,000 to $100,000 go to the General Division. On the criminal side, the Local Court deals with less serious offences, called summary offences, and many indictable offences that can be dealt with summarily, as well as bail, AVOs, and committal steps for more serious matters. For most people, the Local Court, such as Manly Local Court, is the court they will actually encounter.

The District Court

The District Court is the intermediate court, presided over by Judges, and it also has civil and criminal jurisdiction.

On the civil side, the District Court generally hears claims from $100,001 up to $1,250,000, and it has unlimited jurisdiction for motor accident personal injury claims. On the criminal side, it deals with most serious indictable offences, such as serious assaults, major drug matters, and large-scale fraud, usually with a judge and jury, and it hears appeals from the Local Court. It is the court where more serious criminal trials and larger civil claims are heard.

The Supreme Court

The Supreme Court is the highest court in the NSW hierarchy. It has unlimited civil jurisdiction, so it hears the largest and most complex civil matters, and it deals with the most serious criminal offences, such as murder. It also has important supervisory and specialist roles, including probate and the administration of estates, the winding up of companies, and the review of decisions of lower courts and tribunals. Appeals within the Supreme Court go to its Court of Appeal and Court of Criminal Appeal.

Where NCAT fits

NCAT, the NSW Civil and Administrative Tribunal, is not a court but handles a large volume of everyday disputes, often more cheaply and informally than a court. It deals with residential tenancy disputes, retail lease disputes, home building disputes up to $500,000, guardianship, and many consumer and administrative matters. For many of the disputes ordinary people and small businesses face, NCAT, not a court, is the relevant forum.

Why the right forum matters

Getting the forum right matters for several reasons. It affects cost, because the higher the court, the more formal and expensive the process. It affects speed and procedure. And filing in the wrong place, or framing a claim so it falls in the wrong jurisdiction, wastes time and money. Part of the early work in any dispute is identifying the correct forum and framing the matter for it.

This is also where strategy comes in. The same dispute can sometimes be run in different ways that land it in different forums, with very different costs. Choosing well at the start is one of the quiet ways good advice saves money.

How we help

We advise on which court or tribunal your matter belongs in, and we appear across the Local Court and in the higher courts and NCAT as the matter requires. For most of our clients, the Local Court and NCAT are where their matters sit, and we handle those day to day. For larger or more serious matters, we manage the step up to the District or Supreme Court. Either way, getting the forum and the framing right from the start is part of the job.

Frequently asked questions

What is the difference between the Local, District, and Supreme Courts? They form a hierarchy. The Local Court handles smaller and less serious matters, the District Court intermediate ones, and the Supreme Court the largest and most serious. Each has civil and criminal jurisdiction.

How much can each court deal with in a civil claim? The Local Court up to $100,000, the District Court from $100,001 to $1,250,000 (and unlimited for motor accident injury), and the Supreme Court unlimited.

Is NCAT a court? No. NCAT is a tribunal that handles many everyday civil matters such as tenancy, retail leasing, and building disputes, often more cheaply and informally than a court.

Which court will my matter go to? It depends on the type and value or seriousness of the matter. Most everyday matters are in the Local Court or NCAT. We can tell you quickly where yours sits.

Keep reading

• Dispute resolution
• Going to Local Court for the first time: what to expect
• Mediation vs litigation: resolving a business dispute

This article contains general information only and is not legal advice. For advice about your situation, please contact us. Liability limited by a scheme approved under Professional Standards Legislation.