TAKING ADVANTAGE OF THE LAGOS STATE SMALL CLAIMS COURT

On the 23rd of April 2018, the Chief Judge of Lagos State, Hon Justice Opeyemi Oke,
commissioned the Small Claims’ Courts (the “Court”) in the state. The Court, which
has commenced operation, affords an informal, inexpensive and speedy resolution
of simple debt recovery disputes.

SOME HIGHLIGHTS OF THE COURT ARE:
1. Only Magistrate Courts in the state have been designated as small claims
Court.
2. The Court can be utilized to recover small debts not exceeding five million
Naira (N5, 000,000), excluding claims for interests and costs.
3. The procedure is simple and encourages self-representation. Therefore, the
cost of legal representation can be totally avoided.
4. The Court’s procedure greatly reduces the time spent on litigation of small
claims.
5. All filings to be done by Parties have been reduced into easy-to-fill forms.
6. The Court is suitable only for liquidated money claims.

REQUIREMENTS FOR BRINGING A CLAIM BEFORE THE COURT:
A claim can only be brought before the Court if:
a) The Claimant or one of the Claimants resides or carries on business in Lagos
State;
(b) The Defendant or one of the Defendants resides or carries on business in
Lagos State.
(c) The cause of action arose wholly or in part in Lagos State.

(d) The claim is for a liquidated monetary demand in a sum not exceeding N5,
000,000 (Five Million Naira), excluding interest and costs.

PROCEDURE FOR COMMENCING AN ACTION BEFORE THE COURT:
(a) The Claimant must, before commencing an action in the Court, serve the
Defendant a LETTER OF DEMAND for the payment of the debt and give a
period of 7 days for payment.
(b) If after the demand the Defendant/Debtor has still not paid within a reasonable time, the Claimant may commence an action in the Court by
filing a claim in the prescribed form.
(c) Where the Court’s Registrar is satisfied that the claim comes within the
powers of the court and meets all other requirement, he shall issue a
summons to the Defendant.
(d) When the Defendant files a defence the matter proceeds to trial. However,
before the trial commences the Magistrate may give room for amicable
settlement. This settlement opportunity shall not exceed 7 days.

THE TIME-FRAME UNDER THE COURT:
(a) A summons to the Defendant along with the claim must be served on the
Defendant within 7days after filing of the claim and the Sheriff of the Court
is to depose an affidavit of service within 2days after the Defendant is served.
(b) After service on the Defendant, the Defendant must file his defence or
counter claim within 7days and the defence or counter claim is to be served
on the Claimant within 7 days and an affidavit of service deposed 2 days
after such service.
(c) The Claimant is to reply within 5days after he is served with the Defendant’s
defence or counterclaim.
(d) At the hearing, the Magistrate may give room for amicable settlement which
shall not exceed 7 days.

(e) The entire hearing period shall not be more than 30 days from the first date
of hearing, inclusive of the 7 days for amicable settlement.
(f) The Magistrate shall endeavour to deliver judgment within 14 days of the
completion of hearing.
(g) The entire period of proceedings from filing till judgment shall not exceed 60
days. However, a judgment of the Court will not be invalid if the proceedings
exceed 60 days.
(h) The Magistrate is to issue authenticated copies of the judgment immediately
after its delivery but in any event not exceeding 7 days from the judgment.
(i) The Defendant has 14days after the judgement to comply with the
judgement failing which the judgment can be enforced.
(j) A party dissatisfied with the judgement has 14days to appeal the judgment
and the entire appeal process shall not exceed 30 days.

IN CONCLUSION
The introduction of the Small Claims Court in Lagos State is highly commendable as
has become long overdue for Lagos State, as the commercial nerve centre of the
Country, to move beyond the eras of unnecessary delay in simple debt recovery
actions. It is however important that business owners and individuals take advantage
of the time-efficient procedures afforded by the Court in other to avoid prolonged
litigation of small debt actions.

Oliver Omoredia
Blackwood & Stone LP
08100193573