A determination in the Small Claims Division of the Local Court can give rise to an issue estoppel binding in the District Court, notwithstanding the informal procedures of the Small Claims Division and the inapplicability of the rules of evidence. Parties who face the risk of issue estoppel from Small Claims Division proceedings should consider transferring the matter to the General Division, applying for cross-examination, commencing related proceedings in a higher court, or seeking an adjournment. Whether the 'special circumstances' exception to issue estoppel from Arnold v National Westminster Bank [1991] 2 AC 93 forms part of Australian law remains an open question.
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