Civil Disputes Act 2011: pre-litigation requirements: what businesses should know

Article by Micah Jenkins, Susan Moran

Businesses will need to review their dispute resolution processes in light of the new Civil Dispute Resolution Act 2011 (Cth) ('the Act'). The new Act commenced on 1 August 2011 and requires all parties to civil disputes wanting to commence Federal Court or Federal Magistrates Court proceedings to take 'genuine steps' to resolve their dispute before applying to those courts. The Act builds on the Government's policy of ensuring early resolution of disputes without having to resort to costly and time-consuming litigation.

The requirement to take 'genuine steps'

The Act requires:

• Applicants to file a 'genuine steps statement' detailing what steps they have taken to resolve the dispute prior to commencing proceedings, or if they have not taken any steps, the reasons why not; and