---
title: "Offer of compromise in personal injury proceedings (UCPR r 20.26, NSW), with covering letter"
url: "https://ailawframework.com/precedents/personal-injury-and-compensation/offer-of-compromise-personal-injury-nsw"
type: "precedent"
site: "AI Law Framework"
id: "a21-offer-of-compromise-personal-injury-nsw"
area_id: "A21"
kind: "notice"
ai_level: "yellow"
version: 1
task_ids: ["A21-T1-R10", "A21-T1-R13"]
law_stated_as_at: "2026-10-18"
---

# Offer of compromise in personal injury proceedings (UCPR r 20.26, NSW), with covering letter

> Plaintiff's or defendant's formal offer of compromise under r 20.26 of the Uniform Civil Procedure Rules 2005 (NSW), with the mandatory contents, the acceptance period, and a covering letter explaining the indemnity…

Canonical page: https://ailawframework.com/precedents/personal-injury-and-compensation/offer-of-compromise-personal-injury-nsw  
Law stated as at: 2026-10-18

Site index for agents: https://ailawframework.com/llms.txt

Plaintiff's or defendant's formal offer of compromise under r 20.26 of the Uniform Civil Procedure Rules 2005 (NSW), with the mandatory contents, the acceptance period, and a covering letter explaining the indemnity costs consequences under rr 42.14 and 42.15.

## Key facts

- Kind: Notice. A formal notice to serve or publish.
- Practice area: [Personal Injury & Compensation](https://ailawframework.com/precedents/personal-injury-and-compensation.md)
- Jurisdictions: New South Wales
- AI level: Yellow. AI can help in set ways. A lawyer checks specific points before use.
- Law stated as at: 2026-10-18
- Status: Maintained. Checked on 2026-10-18 against the 3 authorities it cites, for New South Wales.

## When to use it

Use in NSW court proceedings for personal injury damages once the claim can be valued, to put the other side at risk of indemnity costs if it does better to refuse. The offer amount and terms come from the lawyer's settlement advice, approved by the client in writing.

## Used for these tasks

- [Draft a settlement advice and conference paper](https://ailawframework.com/practice/personal-injury-and-compensation/draft-a-settlement-advice-and-conference-paper.md)
- [Draft correspondence to the insurer or scheme agent](https://ailawframework.com/practice/personal-injury-and-compensation.md#A21-T1-R13)

## How AI may be used

AI may prepare the offer and covering letter from the settlement advice and the client's written instructions; the lawyer sets the amount and terms and checks the offer against r 20.26 before it is served.

**AI may:**

- Fill the parties, proceedings number, claim and the client-approved amount into the offer
- Check the draft against each requirement of r 20.26(2) and list anything missing
- Calculate the closing date for acceptance from the trial date and the date of service

**AI must not:**

- Must not propose or change the amount, the costs term or any other term of the offer
- Must not include an amount for costs or describe the offer as inclusive of costs
- Must not add terms that exclude, modify or restrict the operation of rr 42.14 or 42.15

**The lawyer checks:**

- The client approved the amount and terms in writing after advice, and the offer is a genuine compromise
- The offer identifies the claim, the proposed orders and the amount, states it is made under the rules, deals with any interim payment and gives an acceptance period of at least 28 days if trial is two months or more away
- Any Medicare, Centrelink or other refund obligations and any statutory costs limits for the claim are allowed for in the advice behind the offer

## Authorities

- [Uniform Civil Procedure Rules 2005 (NSW) r 20.26 (making an offer: what it must identify; no amount for costs; statement that it is made under the rules; interim payments; acceptance period, at least 28 days if made two months or more before trial; without prejudice unless stated; no withdrawal during the period)](https://legislation.nsw.gov.au/view/whole/html/inforce/current/sl-2005-0418)
- [Uniform Civil Procedure Rules 2005 (NSW) r 20.27 (acceptance by written notice during the acceptance period; judgment may be entered)](https://legislation.nsw.gov.au/view/whole/html/inforce/current/sl-2005-0418)
- [Uniform Civil Procedure Rules 2005 (NSW) rr 42.14 and 42.15 (indemnity costs where an offer is not accepted and the judgment is no less favourable to the plaintiff, or no more favourable to the plaintiff)](https://legislation.nsw.gov.au/view/whole/html/inforce/current/sl-2005-0418)

## Full text and drafting notes

The full text and the drafting notes are not part of this public page. Signed-in firm accounts can read them at https://ailawframework.com/precedents/personal-injury-and-compensation/offer-of-compromise-personal-injury-nsw and through the signed-in MCP connector https://ailawframework.com/mcp/firm.

*Practice guidance for planning and review. Confirm current primary sources and the requirements of the actual matter. This is general information, not legal advice.*