Articles

Invalid offers of compromise – implications for insurers

Authors: Simon Lusk

Following the amendments to the Uniform Civil Procedure Rules in June 2013 and the New South Wales Court of Appeal’s decision in Whitney v Dream Developments Pty Ltd, the previous tension in relation to the way in which a valid Offer of Compromise could be expressed has been resolved. However, the implications arising from invalid Offers of Compromise served prior to June 2013 may not yet have run their course.

Solicitors should be aware of the need to review all matters in which pre 7 June 2013 Offers of Compromise, providing for ‘costs to be paid as agreed or assessed’, were served. This review is important, not only to ensure adequate costs protection, but to avoid potential professional negligence claims.

Significant cases, legislation or articles referred to

• Uniform Civil Procedure Rules
• Whitney v Dream Developments Pty Ltd [2013] NSWCA 188
• Old McInnes and Hodgkinson [2011] NSWCA 410
• Vieira v O’Shea (No.2) [2012] NSWCA 121
• Ziliotto v Hakim [2013] NSWCA 359
• Legal Profession Act 2004
• Civil Liability Act 2002 (NSW)

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