Australia: Dispute Resolution Group Update: Mandatory pre-litigation dispute resolution

The amendments to the Civil Procedure Act 2005 (the Act) to include Part 2A, came into force on 1 April 2011.  The aim of the amendment is to encourage an early resolution of disputes or at least allow the parties to narrow the issues in dispute before commencing proceedings.

When parties are considering the commencement of proceedings any NSW, with the exception of the Supreme Court proceedings, they will now be required to take "reasonable steps" to resolve the dispute before commencing proceedings (with exceptions).  The Courts will examine whether reasonable steps have been taken on a case by case basis as the Act does not expressly prescribe what is required, although some guidance is given.

Please note there may be sanctions taken against any party who does not comply with this requirement including the striking out of part or all of the claim.

If you are contemplating commencing proceedings in New South Wales, be aware that you may be obliged to comply with the mandatory pre-litigation dispute resolution requirement.

If you would like more information about please contact John Dalzell or Peta James.

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The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.