Disagreements of one kind or another are a part of commercial life. When efforts to resolve those disagreements are not successful, the matter will often end up in court.
While litigation can be a slow and expensive way of resolving disputes, sometimes it can not be avoided. Unfortunately, the court system can be vulnerable to the tactics of one or both parties seeking to delay proceedings, effectively creating a war of attrition in the courtroom. The result forces both parties to devote precious resources to armies of lawyers wielding swathes of paper.
To overcome these problems and reduce the costs to litigants, the Federal Court is implementing new "fast track" rules to break the burden.
The Rules in a nutshell...
The Rules push for the resolution of disputes within a 4 to 8 month timeframe. Provided that both parties consent, the Rules will apply to disputes in relation to:
- commercial transactions
- an issue that has importance in trade or commerce
- the construction of commercial documents
- an issue that has importance in personal insolvency
- intellectual property.
Essentially, the Rules impose a strict timetable on proceedings and a limitation on the volume of documentation provided by the parties.
Importantly, the Rules:
- will apply to cases that are expected to run for less than 5 days
- require court documents to be informal
- anticipate the implementation of a strict timetable for all proceedings
- expect the parties to attempt resolution of any procedural disputes outside of court
- limit the production of documents for the purposes of discovery to those upon which a party intends to rely and have significant probative value
- stipulate the strict allocation of time for each party to present its case
- limit written closing submissions to 15 pages.
Help or hindrance?
The Rules reflect the fact the most disputes can be resolved quickly once the key issues and relevant documents have been identified.
Parties that want a speedy resolution to their dispute will benefit by agreeing to the implementation of the Rules. However, it is important to note that the Rules may be ill-suited for the resolution of disputes that are complex and involve large amounts of documentation.
Sydney
Chris Kintis t (02) 9931 4896 e ckintis@nsw.gadens.com.au
Megan Valsinger-Clark t +61 2 9931 4955 e
mvalsinger-clark@nsw.gadens.com.au
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.