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ARTICLE · 18 NOVEMBER 2020

On Second Thoughts... Can A Settlement Offer Be Accepted Even After It Has Been Rejected?

Johnson Winter & Slattery
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The Federal Court of Australia has held that an offer to settle made pursuant to its Court rules may remain open, even after it has been expressly rejected or a counter-offer has been made

AustraliaLitigation, Mediation & Arbitration
Kevin Lynch
Kevin Lynch
Jaime Campbell
Jaime Campbell
Veronica Gregory
Veronica Gregory
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Parke v Rubenstein [2020] FCA 1466

The Federal Court of Australia has held that an offer to settle made pursuant to its Court rules may remain open, even after it has been expressly rejected or a counter-offer has been made. The judgment has implications for a party involved in making or accepting an offer under court rules.

  • An offer made under court rules may be validly accepted at any stage during the acceptance period, even after it has been expressly rejected 
  • That offer can only be terminated in the circumstances listed in the court rules  
  • Lawyers should be aware that the offer may remain live, even in the face of other negotiations, whilst legal costs escalate

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