Settling a Minor Civil Claim in Tasmania: Consent Orders and Offers of Compromise

Why Settle

Most minor civil claims in Tasmania settle before they reach a hearing. A settlement gives both parties certainty: you know what you will pay (or receive), you avoid the time and stress of a court appearance, and the matter closes on agreed terms rather than a Magistrate's decision you cannot control.

Settlement can happen at any stage — before the conciliation conference, during it, or even on the day of the hearing.

The Three Settlement Mechanisms

Consent Order (Form 10). Both parties sign this form recording the agreed terms. Common terms include: the defendant pays a lump sum by a specific date, or the defendant pays in instalments on a fixed schedule. Once filed at the registry, a Consent Order is a legally binding, enforceable court order. If either side breaches it, the other can apply for enforcement.

Consent Judgment (Form 20). Used when the parties agree that formal judgment should be entered immediately. This is stronger than a Consent Order — it records a judgment on the court record, which has implications for credit reporting. Use this only when both sides want the finality of a recorded judgment.

Notice of Discontinuance. If the claimant agrees to drop the case entirely — typically after receiving full payment — they file a Notice of Discontinuance under Rule 32. This closes the case without a judgment on the record.

The Offer of Compromise (Form 11)

Form 11 is an Offer of Compromise. Under Rule 89 of the Magistrates Court (Civil Division) Rules 1998, a party may file and serve an offer before final judgment. Under Rule 141, unless the Court orders otherwise, if the claimant obtains a money judgment equal to or less than the defendant's offer, the claimant's costs are limited to the first 14 days after service of the offer, and the defendant is entitled to costs on the applicable scale after that. Rule 96 prevents the offer being disclosed to the trial Magistrate before final judgment. In minor civil claims, legal costs are generally not recoverable, so the practical effect can be limited.

How to Negotiate

Contact the claimant (or their solicitor, if they have one) in writing. Propose specific terms:

• The amount you will pay (if different from the claim)
• How and when you will pay (lump sum, instalments, by what date)
• Whether the settlement is full and final

Keep your communication factual and separate any proposed settlement amount from your position on liability.

If you reach agreement, put it in writing immediately and prepare the Consent Order (Form 10) for both parties to sign. File it at the registry. An informal agreement — a handshake, a text exchange, a verbal deal at the registry door — does not close a court case. The matter stays active on the court list until a formal Consent Order, Consent Judgment, or Discontinuance is entered.

Settlement at Conciliation

If a defence is filed, the registry schedules a mandatory conciliation conference. A court conciliator facilitates the discussion. Conciliation is informal and confidential; do not assume that every statement made there is automatically excluded from evidence at a later hearing.

Many claims settle at this stage. If you reach agreement, the conciliator helps draft a Consent Order on the spot. Both parties sign it, and it is filed immediately. There is no fee for conciliation in minor civil claims.

If you cannot attend in person (distance, work, health), contact the registry at least 48 hours in advance to request a telephone or video appearance.

Our Responding to a Minor Civil Claim in Tasmania guide includes a conciliation prep worksheet and a settlement calculation framework to help you prepare realistic offers before the conference.

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