Guides · Local Court civil claims
You have been served with a statement of claim. What now?
A sealed statement of claim has arrived, handed to you or left at your door. It means someone has started a civil case against you in the NSW Local Court, and a clock is now running. What you do in the next twenty-eight days decides whether you get to defend the case or lose it by default. This guide sets out your options: the deadline, how to file a defence, when to admit and when to dispute, and how to avoid a judgment being entered against you without a hearing.
By Aaron Kernaghan · Published 30 August 2026
The first thing to check: the date you were served.
Being served with a statement of claim is not a judgment. It is the start of a case, and you are entitled to defend it. The single most useful thing to note is the date you were served, because you have twenty-eight days from that date to respond. Miss that window and the other side can enter default judgment against you, which is a judgment you did not get to argue against.
This is general information, not advice on your matter. The right response depends on whether you owe the money, whether the amount is right, and whether you have a claim of your own. If the amount is significant, get advice quickly, because the deadline does not wait.
What are your options when you are served?
There are four practical responses. You can pay the claim, if you accept you owe it and want to stop the interest and costs. You can file a defence, if you dispute all or part of it. You can file an acknowledgment and try to negotiate a payment arrangement. Or you can do nothing, which is the one option that always ends badly, because it leads to default judgment. Doing nothing is not neutral. It is a loss.
You can also admit part and dispute part. If you accept you owe five thousand dollars but dispute a further five thousand, you can admit the first and defend the second. That narrows the case to the real dispute and can stop interest running on the part you accept. The point is to engage within the twenty-eight days, in whatever form fits your position.
How do you file a defence?
A defence is a document that answers the statement of claim paragraph by paragraph, saying which facts you admit, which you deny, and which you do not know about. It then sets out your own account and any legal defence you rely on, such as that the work was never done, the goods were faulty, the debt was already paid, or the claim is out of time. You file it with the court within the twenty-eight days and serve a copy on the plaintiff.
A defence has to do more than say you disagree. It has to raise a real issue for the court to decide. A bare denial with no substance can be struck out, and the plaintiff can then ask for judgment. If you have a genuine dispute, set out the facts that support it. If you are not sure how to plead it, this is the point at which advice is most useful, because a well drafted defence shapes the whole case.
What is a cross-claim?
If you not only dispute the claim but say the plaintiff owes you money, you can file a cross-claim. It is your own claim brought inside the same case. A builder sued for a refund who says the owner still owes the final progress payment can cross-claim for it. The court then decides both claims together, which is more efficient than running two separate cases.
A cross-claim has to be filed and served like any claim, and the plaintiff then gets to defend it. It is a powerful response where the true position is that both sides have claims against each other, because it can turn a case you were defending into one you are also prosecuting.
What happens if you miss the 28 days?
If you do not respond in time, the plaintiff can apply for default judgment. That is a judgment entered against you without a hearing, simply because you did not defend. Once entered, it is enforceable like any judgment, which means the plaintiff can pursue your wages, your bank account, or your property. It can also affect your credit.
A default judgment is not always the end. You can apply to have it set aside, and the court can do so where you have a genuine defence and a reasonable explanation for missing the deadline. But setting aside is not automatic, it costs time and money, and it is far easier to respond within the twenty-eight days than to undo a judgment afterwards. Our guide on default judgment explains the test.
Should you try to settle?
Most civil claims settle. If you owe some or all of the money, an early payment arrangement can save you interest and costs and keep a judgment off your record. Plaintiffs often prefer a reliable payment plan to the cost and delay of a contested hearing. An offer made early, in writing and marked without prejudice, can resolve the matter on terms far better than a fought case.
If the dispute is genuine, mediation is worth considering before the hearing. It is cheaper and faster than a contested hearing and it puts the outcome in the parties' hands. Our guide on mediation in NSW explains how it works and when it helps.
Primary sources: responding to a statement of claim, defences, cross-claims and default judgment are governed by the Uniform Civil Procedure Rules 2005 (NSW) and the Civil Procedure Act 2005 (NSW). Responses can be filed through the NSW Online Registry. NSW civil judgments are searchable on JADE.
Common questions
How long do you have to respond to a statement of claim in NSW?
Twenty-eight days from the date you were served. Within that time you can pay, file a defence, or negotiate a payment arrangement. If you do nothing, the plaintiff can enter default judgment against you without a hearing, so the deadline is the single most important date to note.
What happens if you ignore a statement of claim?
The plaintiff can apply for default judgment, which is judgment against you entered because you did not defend. It is enforceable like any judgment, so the plaintiff can pursue your wages, bank account or property, and it can affect your credit. Ignoring the claim is the worst response.
Can you defend part of a claim and admit the rest?
Yes. You can admit the part you accept you owe and defend the part you dispute. This narrows the case to the real issue and can stop interest running on the amount you accept. The key is to engage within the twenty-eight days in a form that fits your position.
What is a cross-claim?
A cross-claim is a claim you bring against the plaintiff inside the same case, where you say they owe you money too. The court decides both claims together. It is useful where both sides have claims against each other, and it can turn a case you were defending into one you are also prosecuting.
Can a default judgment be set aside?
Sometimes. The court can set aside a default judgment where you have a genuine defence and a reasonable explanation for missing the deadline. It is not automatic, and it costs time and money, so responding within the twenty-eight days is far better than trying to undo a judgment later.
To speak to a litigation lawyer, call Aaron Kernaghan on 0421 717 019.
This article is written by Aaron Kernaghan, Special Counsel at Good Legal Lawyers, as at 30 August 2026. It is general information and reflects the personal opinion of the author only. It is not legal advice, it is not a substitute for advice on your own matter, and it does not purport to be accurate or complete. The law changes and procedure varies from case to case. For advice on a specific matter, contact Aaron Kernaghan on 0421 717 019 or contact the firm.
More commentary by Aaron Kernaghan.