How Long Must Offers Of Compromise Remain Open?

In New South Wales, rule 20.26(7) of the Uniform Civil Procedure Rules (UCPR) requires an offer of compromise served within two months of the trial date to be left open for such time as is reasonable in the circumstances, whereas an offer made more than two months before the trial date must remain open for no less than 28 days. Somewhat surprisingly, in respect of an offer of compromise served within two months of the trial date, the Court of Appeal has recently determined that a period of time exceeding 28 days was unreasonably short in the circumstances.

The claimant served an offer of compromise on 25 September 2007, offering to pay the opponent $400,000. The offer was open for 28 days, expiring on 23 October 2007. The trial was listed to commence on 19 November 2007, meaning that the offer had been made just within two months of the trial date. The UCPR therefore required the offer to remain open for a "reasonable" time.