It’s often the case that if you’re being sued for money or breach of contract, then the legal proceedings would take place in the Court that is closest to you (the defendant) or in the Court closest to where the contract was formed.

There are, however, some exceptions to that rule.

The most common exception is where you owe the money as a result of having signed a contract but not performed it and the terms of the contract say that you agree that if you are sued, then that will happen in whatever Court the other party to the contract nominates.

If a party chooses to issue a debt or other contract claim against you interstate, you should obtain legal advice as to whether the claim should be transferred to South Australia and heard here. If the claim can be transferred, you will need to apply to the Court where the claim was first issued and request that the claim be shifted to South Australia.

The question of whether the claim will be transferred depends on a variety of matters, such as whether the above exception applies or whether the person bringing the claim against you would by unduly prejudiced.

If you’re unsuccessful in your application to have the legal proceedings moved to South Australia, you have several options available to you:

1. 1.   You could get a solicitor interstate. The benefit is that such solicitors are very familiar with the local Court’s rules and customs. The disadvantage is that you may incur considerable expense and effort in instructing the solicitor, particularly if frequent contact with them is required.
2. 2.   Alternatively, you can retain solicitors in South Australia who then use the services of interstate “town agents” for Court attendances. While there is the inevitable degree of double handling, you have local solicitors who can take your instructions and give you advice and who only rely upon and use interstate counterparts in limited circumstances.
3. 3.   Lastly, you can use the services of a firm such as Andersons, who have interstate counterparts as a result of membership of an Australia-wide association of legal firms such as Law Australasia. The advantage of such membership is a seamless transition of advice between States and solicitors and a blending of the best aspects between the first two above options at minimal additional expense.

As you can see, there’s a bit to be aware of if being sued interstate so we’d be recommending you seek legal advice and assistance if this happens to you.  If you’d like some more information on this or would like to chat to the writer of this blog, get in touch with Andersons Partner, Felix Hoelscher.

Please note, this Blog is posted in Adelaide, South Australia. It relates to South Australian legislation.