Criteria for settlementCriteria for settlement

Criteria for settlement

2 Monetary claims covered by this policy are to be settled in accordance with legal principle and practice, whatever the amount of the claim or proposed settlement. A settlement on the basis of legal principle and practice requires the existence of at least a meaningful prospect of liability being established. In particular, settlement is not to be effected merely because of the cost of defending what is clearly a spurious claim. If there is a meaningful prospect of liability, the factors to be taken into account in assessing a fair settlement amount include: (a) the prospects of the claim succeeding in court (b) the costs of continuing to defend or pursue the claim, and (c) any prejudice to Government in continuing to defend or pursue the claim (eg a risk of disclosing confidential government information). 3 Settlements for amounts not exceeding $25,000 may be approved by the accountable authority of the non‑corporate Commonwealth entity, or the accountable authority’s delegate, on the basis of a common sense view that the settlement is in accordance with legal principle and practice. However, if a claim, together with any related claim, cannot be settled for $25,000 or less, it is to be treated as a major claim. 4 Major claims may only be settled if: (a) written advice is received from AGS or a legal adviser external to the entity that the settlement is in accordance with legal principle and practice, and (b) the accountable authority (or delegate) agrees with the settlement. 5 If a non‑corporate Commonwealth entity considers that a claim raises exceptional circumstances which justify a departure from the normal mechanism for settling a claim, it is to refer the matter to OLSC. The Attorney‑General may permit a departure from the normal policy, but may impose different or additional conditions as the basis for doing so.