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The Small Claims Tribunal Act (Chapter 380 of the Laws of Malta) has undergone a noteworthy transformation with the proposal of the Small Claims Tribunal (Amendment) Act, 2025.
This reform aims to strengthen the competence and procedural efficiency of the Small Claims Tribunal by amending key provisions of the principal Act, modernising adjudication methods, and redefining the scope and manner in which such claims are handled.
One of the proposed cornerstone changes is the increase in the monetary threshold for claims admissible before the Small Claims Tribunal. It is being proposed to raise the threshold from €5,000 to €10,000, effectively expanding the Tribunal's jurisdiction and enabling a broader spectrum of civil disputes to be adjudicated in a simplified and expedited manner.
Moreover, this increase also affects sub-article 3(c) of Article 3 which governs claims involving both capital and interest. Previously, the Tribunal retained jurisdiction over claims for capital and interest even where their combined total exceeded €5,000. In line with the proposed changes, this would now refer to the increased amount of €10,000.
Notably, the amount in Article 3(5) also increased up to €10,000, however such change does not affect the notion found within the same sub-article which places matters involving ownership or rights over immovable property, as well as ejectment or eviction, outside the Tribunal's remit, regardless of the amount claimed.
A significant conceptual shift has been implemented through the amendment of Article 7(1). Previously, decisions were to be rendered on the principle of equity. Based on this amendment, any claim or counter-claim with a value of less than €1,500, would be decided principally according to equity while any claim or counter-claim beyond this amount is to be decided in accordance with the law.
The amendments conducted to Article 9 of the principal Act, redefine the adjudicator's role and introduce a greater reliance on written and remotely-held procedures, with the goal of reducing the need for physical sittings. Adjudicators are being directed to endeavour to receive evidence and submissions in writing and avoid holding physical sittings where possible. Where hearings are necessary, video conferencing or other online methods should be prioritised.
It is important to note that once these proposed amendments come into force, they shall only be applicable to cases filed thereafter. However, the procedure allowing for written and remote proceedings, may also be applied to pending cases, giving adjudicators discretion to streamline ongoing matters.
Importantly, cases already filed in the Court of Magistrates prior to the amending Act's coming into force will remain within that court's competence, preserving procedural stability.
Additionally, the penalty that can be imposed by the Tribunal for vexatious or frivolous claims is being increased from €232.94 to €250.
In conclusion, the Small Claims Tribunal (Amendment) Act, 2025 marks a significant stride in aligning Malta's small claims process with contemporary demands for efficiency, clarity, and accessibility. By increasing the Tribunal's jurisdiction, adopting a more structured legal framework, and embracing remote sittings, this legislative reform is poised to reduce delays and procedural constrictions, ultimately delivering faster justice for claimants and respondents alike.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
