Your supplier is suing over a disputed invoice.

The old invoice dispute now has a court timetable

A business has been arguing with a supplier about returned materials. The owner believes the supplier knows the claim is wrong and continues replying to old emails. Then a court claim arrives for the full invoice. The existing dispute is relevant evidence, but it does not replace the formal steps now required. Both the legal timetable and the account need attention.

Identify the court response

Read the claim, named parties, amount and response instructions. Record how and when the papers arrived. Obtain advice promptly on the actual filing and service requirements, rather than assuming the supplier will withdraw the case after another call.

Victoria's Magistrates' Court warns that failure to respond may permit default judgment. That example illustrates the risk of ignoring papers, but the deadline and procedure must be checked for the court handling your case.

Source: Defending a civil matter — Magistrates' Court of Victoria

Reconcile the disputed account

Prepare the original order, invoice, delivery records, return authorisation, credit requests and payments. Show the calculation of the amount you accept or dispute. Identify whether the supplier acknowledged the returned goods and what happened afterwards.

Do not describe the whole claim as fabricated if the disagreement concerns only part of it. A precise account helps the adviser identify a defence, counterclaim or settlement position without unnecessary argument about facts already agreed.

Preserve the negotiation history

Collect relevant emails and offers in their original form. Identify any settlement discussions that may need particular handling before disclosure. Do not send the adviser only the messages that support your position.

Ask how ongoing negotiations should be coordinated with the court case. A proposal to settle may be sensible, but it should not be assumed to suspend a response obligation. Confirm any agreed procedural step through the appropriate channel.

Make a funded response decision

Request an estimate of the cost and risks of defending, settling or pursuing any related claim. Compare those options with the amount genuinely in dispute and the business's cash position. Avoid defending solely to punish the supplier.

Assign one person to manage the documents and timetable. If agreement is reached, ensure the payment, release and treatment of the court proceeding are properly recorded. Resolving the invoice and closing the case are related tasks, but neither should be assumed from a casual exchange.

Respond formally with a reconciled account

Record and obtain advice on the court response requirements.

Prepare a line-by-line reconciliation with return and credit evidence.

Coordinate negotiations with the formal case and document any resolution properly.

Call CRP today about coordinating support for a supplier's disputed court claim.