the sum of
Naira) which had been erroneously deposited into a wrong bank account. Due to
the inability to locate the account owner, my friend was informed by the bank that
only via a court order could the payment be reversed, hence leading to my
friend calling me for help. Would you believe it cost over
Magistrate Court and effect service on the Defendants? Leaving my friend with
value of the sum sort to be recovered.
sort to be recovered could be much higher, for instance
(Three Million Naira) or
(Five Million Naira). No matter the amount, a creditor will usually be required
to pay legal fees, most especially if a lawyer is instructed or one proceeds to
court as an option to recover the debt owed. More often than not, creditors find the legal
and other fees paid to recover a debt as too high. Also, the long period of
time associated with court proceedings further discourages such creditors and
many usually choose to petition the police as an option of recovering the sum. Though
the police do not have the jurisdiction to act as debt recovery agents except
the petition also includes allegations of fraud or deceit.
suffered by creditors especially those seeking to recover small sums, instigated
a cry for a small claims court with a mandate to address the issues of high
cost of litigating small claims and abridge also time of litigation. Thankfully,
the Lagos State Judiciary has established such a court with the introduction of
the MAGISTRATES’ COURTS LAW PRACTICE
DIRECTIONS ON SMALL CLAIMS 2018 by Hon. Mr. Justice Opeyemi O. Oke, Chief
Judge of Lagos State on 24th April, 2018. The objective of the small claims procedure is to provide
easy access to an informal, inexpensive and speedy resolution of simple debt
recovery disputes in the Magistrates’ Courts.
Direction is novel in that it provides in Article 12 (2) that the entire period
of proceedings from filing till judgment shall not exceed sixty (60) days) and
for matters to come under this provisions it must have the following elements
as stated in Article 2 –
or carries on business in Lagos State;
Defendant or one of the Defendants resides or carries on business in Lagos
demand in a sum not exceeding
(Five Million Naira), excluding interest and costs.
LETTER OF DEMAND.
in Article 10 that Parties may represent themselves at the proceedings in the
Small Claims Court. Partnerships and Registered Companies can be represented by
either a Partner, Company Secretary or any other Principal Officer of the
Partnership or Company.
businesses and persons in Lagos seeking to recover sums below
Court as it reduces the cost of litigation and abridges the time spent in
court. To institute a proceeding for debt recovery according to the Small
Claims Practice Direction, one may a fill the Small Claims Complaint Form and
file same at the Magistrate Court. For further information on how to take
advantage of the new practice direction in recovering your debt, you may
consult a lawyer or visit the Registry of the Magistrate Court.