JUN - 2012
The Subordinate Courts have issued an amendment to the Subordinate Courts Practice
Directions via Practice Directions Amendment No. 2 of 2012, which took effect from 28th May
2012. This amendment introduces a presumption of Alternative Dispute Resolution (ADR) for
all civil disputes in the Subordinate Courts. This is set to be a significant amendment as it
expressly integrates the use of ADR into the litigation process, and redefines the role of the
Courts and lawyers to include a wider range of dispute resolution options.
ADR has long been encouraged by the Courts as a non–confrontational setting to resolving civil disputes. This amendment represents a culmination of the Subordinate Court‘s attempts to urge parties to consider conciliatory ways of resolving disputes instead of resorting to costly and protracted litigation.
The case is to be returned to the NSW Court of Appeal, where arguments by the directors as to why they ought to be excused from the strict penalties imposed by the NSW Supreme Court in 2009 are to be heard. They face lengthy bans from acting as company directors, as well as pecuniary fines.