Simple Summons: How a Liquidated Claim Gets You Paid Faster

A business extends credit, delivers the goods, sends the invoice, and then waits. When nothing arrives, the question is not whether the debt is owed, but how quickly a court can be asked to say so. That is where the difference between a liquidated and an unliquidated claim becomes practical, and expensive.

Liquidated means fixed and certain

A claim is liquidated when the amount is fixed, certain or ascertainable without the court having to hear evidence to work it out. An invoice for R48 500 for goods delivered, a signed loan for a stated amount, a rental arrear calculated from a written lease: all liquidated.

A claim is unliquidated when the amount depends on evidence, opinion or a court’s discretion. Damages for a breach of contract where the loss must still be proved, compensation for personal injury, and claims for pain and suffering are the clearest examples.

Why the difference changes the summons

The rules of court draw the line in the same place. In the Magistrates’ Courts, rule 5(2) provides that where a claim is not for a debt or liquidated demand the summons must be a combined summons, with a statement of the material facts annexed. Where the claim is for a debt or liquidated demand, the summons may be a simple summons. In the High Court, rule 17(2) draws the same distinction: a simple summons for a debt or liquidated demand, a combined summons for everything else.

The practical effect is speed and cost. A simple summons sets out the cause of action in concise terms rather than full particulars of claim. If the debtor fails to deliver a notice of intention to defend, the creditor can apply for default judgment without the extra pleading step. A combined summons, by contrast, must be served with detailed particulars of claim, which takes longer to prepare and longer to respond to.

There is a third route worth knowing. Where the claim is based on a liquid document, meaning a document in which the debtor acknowledges an unconditional obligation to pay a fixed sum, the High Court rules allow a provisional sentence summons. It is a faster procedure still, but it depends entirely on having the right document.

The documents that decide the matter

Whether a claim is liquidated is not a matter of argument, it is a matter of paperwork. These are the documents that make the difference:

• A written agreement signed by the debtor
• Invoices and delivery notes showing goods or services were received
• Statements of account setting out the running balance
• An acknowledgment of debt or a signed payment arrangement
• A lease, a loan agreement, or a purchase order

If those documents exist and the amount flows from them without dispute, the matter is usually straightforward. If the amount can only be established by hearing witnesses, the claim is unliquidated and the summons must be a combined summons, with the delay and cost that follow.

Do not ignore prescription

A debt does not stay alive forever. Under the Prescription Act, most debts prescribe three years after they became due, and in some cases sooner. A debtor who has been paying a little here and there may also have interrupted prescription, which requires proper advice rather than assumption. Credit controllers who file a matter away for two years often discover the claim is gone.

What a creditor can do after judgment

Once judgment is granted, collection is not automatic, but it is methodical. Depending on the debtor and the information available, a creditor can obtain a warrant of execution against movable property, an emoluments attachment order against a salary, or a garnishee order against a bank account. Interest and legal costs are usually recoverable, which is why a properly drafted summons matters: a weak claim costs the creditor money instead of recovering it.

Practical steps

• Keep signed agreements, invoices, delivery notes and statements in one place per customer
• Send a written letter of demand before issuing summons and retain proof of delivery
• Act well before the three year prescription period runs out
• Check whether the amount owed is fixed by the documents, because that decides how the matter is issued
• Where an acknowledgment of debt exists, keep the original safe

How We Can Help

We assist creditors with letters of demand, simple and combined summonses, default judgment applications and execution, and we defend clients who receive claims. If you are owed a fixed amount and the paperwork is in order, we can often move quickly. Bring your invoices and your agreement, and we will tell you honestly whether the claim is liquidated and what it will cost.