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PERSONAL INJURIES PROCEEDINGS ACT 2002 - SECT 40
Provisions about mandatory final offers
40 Provisions about mandatory final offers
(1) A mandatory final offer for the upper offer limit or less must be
exclusive of costs.
(2) If a mandatory final offer is for more than the lower
offer limit but not more than the upper offer limit, and is accepted, costs
are to be calculated and paid on a basis (but subject to limits) stated under
a regulation.
(3) Even though a respondent denies liability altogether, the
respondent must nevertheless make a mandatory final offer but, in that event,
the offer is to be expressed as an offer of $nil.
(4) A mandatory final offer
must remain open for 14 days and a proceeding in a court based on a claim must
not be started while the offer remains open.
(5) If the claimant starts a
proceeding in a court based on the claim, the claimant must, at the start of
the proceeding, file at the court a sealed envelope containing a copy of the
claimant’s mandatory final offer.
(6) A respondent must, before or at the
time of filing a defence, file at the court a sealed envelope containing a
copy of the respondent’s mandatory final offer or, if a joint final offer is
made by multiple respondents, a copy of the respondents’ mandatory final
offer.
(7) The court must not read the mandatory final offers until it has
decided the claim.
(8) However, the court must, if relevant, have regard to
the mandatory final offers in making a decision about costs.
(9) The court
may, on application by a party, dispense with the obligation to make mandatory
final offers.
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