Offer of compromise – Debate over terms

Sharp bht Sharp v Illawarra Shoalhaven Local Health District [2018] NSWSC 545 saw a debate arise as to terms covering costs and interest on costs, following service of an offer of compromise. The defendant, having accepted the plaintiff’s offer, provided a draft consent judgment.

The court noted at [21] – [22]:

In the context of the provisions of the UCPR upon which the plaintiff relied and by which each of the parties are bound, the terms of the Offer of Compromise, recited above, were, expressly, accepted by the defendant in its letter dated 25 January 2018, also recited above. The terms of the agreement are that there be verdict and judgment for the plaintiff in the sum of $10 million and that otherwise the UCPR provisions will apply.

By the foregoing, the Court is not suggesting that it would not have been preferable for the orders to be made by the Court to be agreed. However, that which was agreed is, subject to the issue of approval, enforceable.