Civil Dispute Lawyers in Melbourne (Victoria)

In Victoria, a civil dispute usually starts with assessing the evidence and the limitation period, followed by a letter of demand to try to settle. If that fails, the right forum depends on the amount and type of claim: the Magistrates' Court, County Court, Supreme Court or VCAT. Contract claims must generally be brought within 6 years of the cause of action arising, and the Magistrates' Court hears civil claims up to $100,000. We help individuals and small businesses recover debts and resolve contract disputes in Mandarin, Cantonese or English, through mediation or in court.

Key points

• The Magistrates' Court can hear civil disputes up to $100,000, including debts, damages and other money claims.
• Contract and tort claims generally must be brought within 6 years from when the cause of action arose (Limitation of Actions Act 1958, s 5(1)(a)).
• An action on a judgment cannot be brought more than 15 years after the judgment became enforceable (s 5(4)).
• Victorian courts and VCAT commonly refer cases to mediation or other alternative dispute resolution before a hearing.
• Generally the losing party pays part, though usually not all, of the winning party's legal costs.

Common types of civil disputes

• Contract disputes: unpaid invoices or service fees, construction payment disputes, defective goods, failed joint ventures;
• Debt recovery: personal loans, trade debts, rent or bond;
• Consumer and trader disputes: goods or services not as agreed, with rights under the Australian Consumer Law;
• Partnership and shareholder disputes: profit shares, exit terms and ownership of assets.

Whatever the dispute, gathering contracts, invoices, bank transfers, WeChat or WhatsApp messages and emails early often decides how strong the case is. Chinese-language messages can be used as evidence but usually need a certified English translation for court.

First step: letters of demand and negotiation

A letter of demand sets out the amount owed, the legal basis and a deadline to pay, and states that legal action will follow if it is not met. Many disputes settle at this stage or result in an instalment arrangement. A settlement should be recorded in a deed of settlement covering the payment schedule, consequences of default and the scope of mutual releases, to avoid a further dispute later.

If you are the one receiving a letter of demand or court documents, do not ignore them. Court documents usually set a deadline to file a defence, and if you miss it the other side may obtain default judgment. Responding early with a defence or settlement proposal can greatly reduce cost and risk.

Choosing the right court or tribunal

Magistrates' Court: civil disputes up to $100,000, with relatively simple procedures. County Court and Supreme Court: larger or more complex civil claims. VCAT: particular kinds of disputes, such as consumer and trader, co-ownership, building and owners corporation matters, with flexible procedures, though parties usually need VCAT's permission to be legally represented. Choosing the wrong forum can add cost and delay, so confirm jurisdiction before filing.

Limitation periods: don't wait too long

Under the Limitation of Actions Act 1958, claims in contract or tort generally must be brought within 6 years from when the cause of action arose. After that, the other side can rely on the time limit as a defence. Some categories, such as personal injury and building defects, have different rules. When time starts running is not always obvious, for example with instalments or repeated breaches, so get it calculated early.

Mediation and costs risk

Legal costs can be out of proportion to the amount in dispute. Generally the loser pays part of the winner's costs, but the winner usually still bears some of its own. Mediation uses a neutral third party to help the parties reach agreement, is confidential, and is usually far quicker and cheaper than a hearing. Justin Chua is a Nationally Accredited Mediator and also appears in court himself, so he can weigh mediation and litigation strategy with you. A well-timed written settlement offer, such as a Calderbank offer, can also improve your position on costs.

Enforcing judgments and cross-border debtors

A judgment is not the same as payment. In Victoria a judgment creditor may, depending on the case, seek seizure and sale of property, an attachment of earnings order, or an order for the debtor to attend court and disclose their finances. If the debtor has left Australia or holds assets overseas, such as in Malaysia, Singapore, Hong Kong or mainland China, you need to consider whether the Australian judgment can be recognised there or whether fresh proceedings are needed locally. For example, a supplier chasing a customer who has returned home should first check whether that customer still has assets in Australia, then decide where suing is most practical.

Frequently asked questions

How long do I have to sue for an unpaid debt in Victoria?

For a contract debt, generally 6 years from when the cause of action arose. The start date depends on the facts, so get advice early.

What is the Magistrates' Court limit for civil claims in Victoria?

The Magistrates' Court hears civil disputes up to $100,000. Larger claims are generally brought in the County Court or Supreme Court.

Is a letter of demand worth sending?

Many debts are paid, or an instalment plan agreed, after a letter of demand. It also shows you are serious and creates a record for later proceedings and costs.

If I win, will the other side pay all my legal fees?

Usually not all. The losing party generally pays part of the winner's costs, and the winner often still bears some of its own.

The debtor has gone back to China or Malaysia. Can I still recover?

Possibly, but you need to assess whether they still have assets in Australia, and whether an Australian judgment can be recognised there or fresh proceedings are needed. Do this assessment before suing.

If you are dealing with an unpaid debt, a contract dispute or have been served with court documents, call 03 9602 3988 to book a meeting at our Melbourne CBD office at Level 2, 262 Queen Street, or by video, in Mandarin, Cantonese or English. Civil disputes are handled by Justin Chua.

This article is general information only and is not legal advice.

Reviewed by Justin Chua, Lawyer, Chua Tan Associates | Last updated: October 2026