Settlement happens when parties agree to resolve a claim, often at mediation. It depends on how strong the evidence of liability and loss is. Families should receive clear advice about each offer and understand the final terms before agreeing.
Preparing for mediation
Mediation is usually more productive once both sides hold expert evidence on breach, causation and loss. Your lawyer may prepare a written summary of the claim and a schedule of damages. Families often meet their lawyer beforehand to discuss priorities, possible outcomes, and how they want to take part on the day.
Assessing liability and damages
Offers reflect two questions: how likely the claim is to succeed on standard of care and causation, and what the losses are worth. A strong damages case can still attract a reduced offer if causation is uncertain. Lawyers weigh both questions when advising.
Offers and counteroffers
Offers may be made before, during or after mediation, and some carry costs consequences if they are rejected and the case later does worse at hearing. Ask your lawyer to explain the risks of accepting compared with continuing, in plain terms and in writing.
Advice and authority
Your lawyer should confirm in advance what range of settlement you authorise and ensure you have time to consider any proposal. For a child, a court or a similar process may need to approve the settlement as being in the child's interests.
Settlement terms
The headline figure is only part of the outcome. Read how costs, Medicare and other repayments, NDIS implications, payment timing and fund management will work.
- Net amount after legal costs and disbursements
- Medicare and other compensation recovery amounts
- Effect on current or future NDIS support
- Arrangements for managing a child's funds
- Any confidentiality or release clauses
For your next conversation
- Your lawyer's written schedule of damages
- Expert reports both sides have exchanged
- A written explanation of each offer received
- An estimate of the net amount after deductions
- The proposed arrangements for managing funds
Common questions
Do we have to accept an offer made at mediation?
No. Mediation is voluntary in its outcome, and you may decline an offer. Rejecting some formal offers can carry costs consequences, though, so ask your lawyer to explain the risks before you decide. Taking time to consider a proposal is often reasonable.
Why might a settlement need court approval?
Where the injured person is a child or lacks capacity, courts commonly review settlements to protect their interests. The process looks at the amount, legal costs and how funds will be managed. Requirements differ by jurisdiction, so your lawyer should explain the local process.
Sources & further reading
- NDIS: compensation calculator (opens in a new tab)
- Services Australia: Medicare compensation recovery (opens in a new tab)
These references support the topic’s starting points. They do not determine the facts, standard of care or law applicable to an individual matter.