When deciding out of which court to institute action, due consideration must be given to the monetary threshholds (limits) that each court has jurisdiction over:
- Small claims court: maximum R20 000.00
- Magistrates District court: maximum R200 000.00
- Magistrates Regional court: R200 000.01 to R400 000.00
- High Court: R400 000.01 +
Certain contracts contain clauses whereby parties agree to the jurisdiction of a certain court, i.e. Magistrates court, notwithstanding that the claim may exceed the court’s ordinary monetary threshhold. This is done with the aim of ensuring that cost effective litigation is available to the parties in the event of a dispute arising.