304Compromises

304 Compromises

(1)  This rule applies if a compromise of a proceeding is proposed and any person including an unborn or unascertained person interested in, or who may be affected by, the compromise is not a party to the proceeding and –

(a) there is another person in the same interest before the Court who assents to the compromise or on whose behalf the Court or a judge sanctions the compromise; or

(b) the person who is not a party is represented by a person appointed under rule 303(1) and that person assents to the compromise.

(2)  The Court or judge may approve a compromise and order that it is binding on any absent person if satisfied that –

(a) the compromise is for the benefit of the absent person; and

(b) to require service on that person would cause unreasonable expense or delay.

(3)  An absent person is bound by an order under subrule (2) in accordance with its terms as if he or she were a party.