If your Queensland personal injury claim reaches the later stages of the claims process, you may receive a Mandatory Final Offer (MFO) or, in WorkCover common law claims, a written final offer.
Although the terminology differs depending on the type of claim, both are intended to encourage the parties to resolve a claim before court proceedings become necessary.
What is a Mandatory Final Offer?
A Mandatory Final Offer is a formal settlement offer exchanged as part of the pre-court claims process.
It sets out the amount a party is prepared to accept or pay to resolve the claim at that stage.
Mandatory Final Offers are designed to:
- Encourage settlement;
- Narrow the issues in dispute;
- Avoid unnecessary litigation where possible; and
- Assist the court when considering legal costs if proceedings are later commenced.
Receiving or making an MFO does not mean the claim has settled, nor does it require either party to accept the offer.
What is a Written Final Offer?
WorkCover common law claims use a similar process, although the legislation refers to a written final offer rather than a Mandatory Final Offer.
Like an MFO, a written final offer records each party’s final settlement position at the conclusion of the compulsory pre-court process.
Although the terminology differs, both are designed to encourage early resolution of claims before litigation becomes necessary.
Which claims use final offers?
| Claim type | Final offer |
|---|---|
| Motor vehicle (CTP) | Mandatory Final Offer |
| Public liability | Mandatory Final Offer |
| Medical negligence | Mandatory Final Offer |
| WorkCover common law | Written final offer |
What happens after final offers are exchanged?
If both parties agree on settlement, the claim can usually be resolved without court proceedings.
If agreement cannot be reached, negotiations may continue or the claim may proceed through the court process, depending on the circumstances.
How is a final offer assessed?
Every claim is different.
When considering whether a final offer is reasonable, factors may include:
- Liability and any contributory negligence;
- The medical evidence;
- Past and future financial losses;
- Future treatment needs;
- Previous court decisions involving similar injuries; and
- The costs and risks of continuing the claim.
Do final offers affect legal costs?
In some circumstances, yes.
If court proceedings are required, they may later become relevant when the court considers legal costs.
Yes. It is common for parties to continue negotiating after Mandatory Final Offers or written final offers have been exchanged, and many claims settle at a later stage.
They are similar in purpose but arise under different legislation. Mandatory Final Offers are generally used in CTP, public liability and medical negligence claims, while WorkCover common law claims use written final offers.
If court proceedings are commenced, the offers may later become relevant when the court considers legal costs.
If settlement cannot be reached, the claim may proceed to court, provided the relevant legislative requirements have been met. Many claims, however, continue to negotiate and settle before reaching a trial.
The information on this page is general in nature and does not constitute legal advice.