Offers of compromise: be careful what you promise

In brief - Take heed of rule 20.26 of Uniform Civil Procedure Rules

A recent NSW Supreme Court case shows that defendants seeking to refrain from paying the settlement sum following acceptance of an offer of compromise until after receipt of all necessary clearances, must stipulate this in the offer or risk having to pay interest.

Effect of interest when the settlement sum not paid within 28 days

In the case Holshandon Pty Ltd as Trustee of the Rankin Family Trust No. 1 v Eakin [2014] NSWSC 1529, the NSW Supreme Court recently determined that a plaintiff is entitled to claim interest if the settlement sum accepted in an offer of compromise is not paid within 28 days of acceptance of the offer irrespective of whether the defendant has received the necessary documents to ensure that appropriate reimbursements are made (i.e., to Medicare and Centrelink).