What does it do?
Parties decide which court is competent to hear a specific case. When it comes to criminal matters serious matters cannot be heard by lower courts and must be referred to higher courts. When it comes to civil matters there are monetary limits to which courts can hear a matter.
The following monetary limits apply:
Small Claims Court – Up to R15 000.00
Local Magistrates Court – Up to R 200 000.00
Regional Magistrates Court – R 200 000.00 – R 400 000.00
Thereafter you usually must take your case to the High Court. The High Court can be much more expensive to litigate out of as you require the assistance of an advocate to present your case. You will now be paying for two rather than one legal counsel. For this reason we suggest and sometimes draft our Kleva Contracts, so that parties agree to the jurisdiction of the magistrates court even if the monetary value is higher than R 400 000.00.
Kleva Contracts sample wording:
he parties submit all their disputes arising out of or in connection with this Agreement to the exclusive jurisdiction of the Courts of South Africa