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ARTICLE · 22 JULY 2012

Is your Calderbank offer clear and capable of being accepted?

Clearly drafted Calderbank offers and Offers of Compromise can provide litigants with some degree of costs protection.

AustraliaLitigation, Mediation & Arbitration
Roxana Carrion
Roxana Carrion
Zara Shafruddin
Zara Shafruddin
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Key Points:

Your Calderbank letter must be correctly drafted, and its terms unambiguously clear and capable of being accepted.

For most litigants, the costs incurred in running a dispute is a key concern, and in their mind throughout the litigation process. For this reason, Calderbank offers and Offers of Compromise are important tools, as they can result in litigants having some degree of costs protection.

In particular, Calderbank offers provide a flexible approach to the making of settlement offers and will often be deployed in the lead-up to trial, which is one of the most intense periods in a litigated matter. Quite often, Calderbank offers can be carelessly drafted, with the focus of the correspondence being on pressuring the offeree to settle and ignoring essential requirements.

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