Taking Genuine Steps to Resolve Disputes

The Civil Dispute Resolution Act 2011 (Cth) commenced on 1 August 2011 (“the Act”), applying to civil proceedings in the Federal Court and Federal Magistrates Court. The aim of the Act is to encourage people where reasonable to resolve civil disputes without resorting to litigation.

The requirement to take genuine steps

The Act requires that parties make a sincere and genuine attempt to resolve disputes before they commence litigation in the Federal Courts. Examples of what might constitute a genuine attempt to resolve the dispute are:

* writing to the other person explaining the issues in dispute and offering to discuss a resolution;
* providing documents/information to the other person to enable them to understand the issues in dispute;
* considering alternative dispute resolution, such as mediation;
* participating in alternative dispute resolution; and
* attempting to negotiate a resolution.

Preparing a Genuine Steps Statement

Parties commencing civil litigation in the Federal Court and Federal Magistrates Court must file a statement that they have taken genuine steps to resolve a dispute (a “Genuine Steps Statement”).

A Genuine Steps Statement must be filed either at the time the proceedings are commenced, or no later than the first listing date (the Registry will advise of this date). The statement must set out:

* the steps that have been taken to try to resolve the dispute; or
* if no steps have been taken, the reasons why.

A respondent who is served with a Genuine Steps Statement by the person commencing proceedings must also serve a Genuine Steps Statement setting out:

* whether they agree with the statement filed by the applicant; or
* if they do not agree, the reasons why.

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