Wrong goods, right defence: what to do if a supplier sues you

When the invoice turns into a court claim

A supplier dispute can move quickly from a broken delivery to a court claim. The pressure is worse when the invoice is for goods you say were wrong, defective or not what you ordered. In that situation, the paper trail matters more than the argument on the phone. What was ordered, what arrived, and when you complained are the points that usually decide the next step.

Business.gov.au says supplier problems are often resolved by a formal letter of concern and clear records, and that contract terms can guide the dispute process. If the goods were supplied under a consumer arrangement, the Australian Consumer Law also includes guarantees about acceptable quality. ([business.gov.au](https://business.gov.au/people/suppliers?utm_source=openai))

Lock down the order and delivery evidence

Start by gathering the order, quoted specs, purchase order, delivery dockets, packing slips and every photo you took when the goods arrived. If the item was wrong, damaged or not fit for the job, that evidence should show it. Keep the records in date order so the story is easy to follow later.

If the supplier delivered the wrong item or the wrong grade, mark up the documents so you can see exactly where the mismatch appears. Do not rely on memory. A brief note written at the time, even if it is blunt, is usually more useful than a polished explanation drafted months later after the file has gone cold.

Source: Official guidance

Check whether you complained in writing

A strong defence usually needs more than a complaint on the phone. Check whether you told the supplier in writing that the goods were wrong, defective or rejected. Save emails, texts and letters, and note the date each message was sent. If you only spoke about the issue verbally, write down who said what and when.

Business.gov.au recommends a formal letter of concern when a supplier issue is not being resolved. That step helps show you raised the problem promptly and gave the supplier a clear chance to fix it. It also makes it harder for the other side to say you accepted the goods without complaint. ([business.gov.au](https://business.gov.au/people/suppliers?utm_source=openai))

Work out whether you have a counterclaim

If the bad goods caused extra labour, replacement costs, delay costs or wasted materials, calculate those losses now. Keep the maths conservative and link each amount to a document. The aim is not to inflate the dispute. It is to show the real loss caused by the supplier's failure, if any, in a form you can explain plainly.

That calculation may support a counterclaim or a set-off, depending on the paperwork and the court process. The question is not just whether you are unhappy with the goods. It is whether you can connect the problem to a measurable loss. If the figures are messy, tidy them before the deadline rather than trying to reconstruct them later.

Diarise the defence deadline now

Do not assume every court gives you the same time. The deadline to file a defence depends on the court and the type of proceeding. In the Federal Court, a defence is generally due within 28 days of service of the statement of claim. In the Supreme Court of Victoria, the timing can be 30 days in the relevant procedure. ([fedcourt.gov.au](https://www.fedcourt.gov.au/law-and-practice/practice-documents/practice-notes/def-1?utm_source=openai))

That means the safest move is to read the papers today and write the date in your diary, phone and job file. If you miss the deadline, your position can narrow fast. If you are unsure which court process applies, get advice before the clock runs out rather than after default steps start.