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CIVIL LAW (WRONGS) ACT 2002 - SECT 114K

Court may set aside abuse settlement agreement

    (1)     This section applies if a person (the applicant ) is prevented from exercising an action on a cause of action because of an abuse settlement agreement.

    (2)     The applicant may—

        (a)     begin a proceeding on the cause of action in a court with jurisdiction to hear the proceeding; and

        (b)     apply to the court to set aside the agreement.

    (3)     The court may set aside the agreement if the court is satisfied that—

        (a)     when the agreement was made there were legal barriers to the person being fully compensated through a legal cause of action; or

        (b)     when the application is made to set aside the agreement, the agreement is, in all the circumstances, not a just and reasonable agreement.

    (4)     The court may consider the following in deciding whether to set aside the agreement:

        (a)     the amount paid to the applicant under the agreement;

        (b)     the bargaining position of the parties to the agreement;

        (c)     the conduct of the following people in relation to the agreement:

              (i)     a party other than the applicant;

              (ii)     a legal representative of a party other than the applicant;

        (d)     any other matter the court considers relevant.

    (5)     The Evidence Act 2011

, section 131 (1) (Exclusion of evidence of settlement negotiations) does not prevent evidence being adduced in a proceeding begun under this section, even if the evidence is of a communication made, or a document prepared, in connection with an attempt to negotiate a settlement of the dispute to which the agreement relates.



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