Summary Judgement in Dispute Resolution and Debt Recovery

What is a Summary Judgement?

A summary judgement is a court order made when the plaintiff can show that the defendant has no valid defence to the claim (or in some instances, part thereof). Rather than progressing through all the usual case management steps—such as document exchanges, settlement conferences, and lengthy hearings—the court can decide the matter based on sworn evidence alone.

In the District Court, a summary judgement application can be made at the time of filing the statement of claim, within 10 working days after receiving a defence, or later with the court’s permission. In the High Court, it can be made only when filing the claim or with leave.

When is a Summary Judgement Appropriate?

Summary judgement is most suitable where the facts are clear and undisputed. It is often used in straightforward debt recovery claims where a contractual obligation is not met, and the debtor has no arguable defence. The plaintiff must file affidavit evidence proving both the debt and the absence of a defence. If the defendant wishes to contest the claim, they must also provide their own sworn evidence.

Consider this example: in Bank of India (New Zealand) Limited v Gupta (2025 NZHC 998), the High Court granted summary judgment for over $2.16 million after finding the guarantor’s defence—alleging a breach of duty in a mortgagee sale—was unsupported by credible evidence. The bank’s detailed marketing records and expert testimony showed it had met its legal obligations, illustrating how robust evidence can lead to a swift resolution without a full trial.

Benefits and Risks

The key advantage of summary judgement is speed. If uncontested, judgement may be granted immediately. If defended, a hearing can often be scheduled much sooner than in standard proceedings, potentially resolving the matter within months rather than years. This can reduce the stress, uncertainty, and ongoing costs of prolonged litigation.

However, there are trade-offs. Preparing a summary judgement application requires gathering and presenting evidence upfront, which means higher initial costs. If unsuccessful, you may face an adverse costs order and have to proceed through the longer standard process anyway.

Summary Judgement vs Standard Proceedings

In standard proceedings, the process starts with filing and serving a statement of claim. The defendant has 25 working days to file a defence. If they do not, you can seek a default judgment—often quicker and cheaper than pursuing summary judgement. But default judgements can sometimes be set aside later if the defendant can show an arguable defence.

If a defence is filed, standard proceedings typically involve case management conferences, evidence preparation, and possibly settlement conferences before a hearing date is set. This can take significantly longer to resolve.

Costs Considerations

In either process, legal costs may be partly recoverable, but subject always to the Court’s discretion and is not guaranteed. Courts usually award “scale costs,” which are based on set amounts for each procedural step. These rarely cover the full amount of legal fees and are often closer to 50% of actual costs. Out-of-pocket expenses—such as court filing fees or expert witness charges—are generally recoverable in full.

Even with a judgement in your favour, recovery depends on the defendant’s ability to pay. This should be factored into your decision when choosing whether to pursue summary judgement.