On 23 June 2023, the Uniform Civil Procedure (Offers to Settle) Amendment Rule 2023 (“amendment rule”) was published on the Queensland Legislation website.
The amendment rule changes the way costs are awarded based on offers made under Part 5 of Chapter of 9 of the Uniform Civil Procedure Rules 1999 (“UCPR”), known as formal offers. The amendments follow advocacy by the Queensland Law Society to make these rules fairer for all parties to a proceeding and thereby, more readily used. They make the UCPR more consistent with the court rules in other Australian jurisdictions, including the Federal Court Rules 2011.
Specifically, the amendment rule:
1. Replaces rule 360 of the UCPR in relation to offers made by a plaintiff (and where the plaintiff obtains an order no less favourable than the offer) to provide, unless the defendant shows another order for costs is appropriate, the defendant will pay the plaintiff’s costs:
(a) calculated on the standard basis, up to and including the day of service of the offer; and
(b) calculated on the indemnity basis, after the day of service of the offer.
Previously the rule allowed the plaintiff to recover indemnity costs from the defendant for the entire proceeding.
2. Amends rule 361 of the UCPR in relation to offers made by the defendant by:
(a) Providing that if the plaintiff obtains an order that is less favourable than the defendant’s offer then, unless a party shows another order for costs is appropriate:
(i) the defendant pay the plaintiff’s costs on a standard basis up to and including the day of service of the offer;
(ii) the plaintiff to pay the defendant’s costs, calculated on the indemnity basis, after the day of service of the offer;
(iii) the plaintiff is not entitled to any costs after the day of service of the offer.
(b) Inserting rule 361A, which applies in relation to offers made by the defendant when the plaintiff’s proceeding is dismissed, and provides that unless a party shows another order for costs is appropriate in the circumstances:
(i) the plaintiff pays the defendant’s costs calculated on the standard basis, up to and including the day of service of the offer; and
(ii) the plaintiff pays the defendant’s costs calculated on the indemnity basis, after the day of service of the offer.
Previously, rule 361 provided that if a defendant made an offer that was not accepted by and the plaintiff did not obtain an order that was more favourable than the offer, the defendant was to pay the plaintiff’s standard costs up to the day of service of the offer and was only entitled to standard costs following service of the offer.
The amendment rule contains transitional provisions that state the previous rules apply to offers made before the commencement of these amendments. The new rules apply to offers made after 23 June 2023.
Share this article