Franchising implications of the new Civil Dispute Resolution Act

A new requirement for both parties to file a "Genuine Steps" statement should further streamline dispute resolution in the franchise sector. The Civil Dispute Resolution Act 2011 (Cth) (Act) and new Federal Court Rules commence from Monday 1 August 2011. The key object of the legislation is to ensure that parties take "genuine steps" to resolve their disputes before commencing proceedings in the Australian Federal Court or Federal Magistrates Court. The policy objective underpinning the introduction of the pre-action process is to encourage the early resolution of disputes without resort to the Courts.

The new rules will apply to all proceedings commenced after 1 August 2011 as well as to any new steps taken in existing proceedings (unless the Court determines otherwise).