ARTICLE · 15 MARCH 2012

Offers of Compromise which refer to costs are invalid

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An offer of compromise in NSW must conform to Rule 20.26 of the UCPR and must be exclusive of costs to be valid.

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Vid Dragomirovic

Judgment date: 20 February 2012

McGlen-McLeod v Galloway (No.2) [2012] NSWDC 11

District Court of New South Wales¹

In Brief

An offer of compromise must conform to Rule 20.26 of the Uniform Civil Procedure Rules 2005 (NSW) (UCPR) and must be exclusive of costs.
The exception to the Rule is where an offer of compromise states that it is a verdict for the defendant and the parties are to bear their own costs.
An offer of compromise expressed "plus costs or exclusive of costs" may be invalid pursuant to Rule 20.26 of the UCPR.

Background

On 28 May 2008, Ms McGlen-McLeod (plaintiff) sustained injury when she fell through a rotten floorboard in the verandah of the home she and her family were renting.

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