Case study · Settlement deeds

Her $15,000 settlement arrived nine days late. Her case stayed closed

Application dismissed; costs orderedFederal Court of Australia · 6 May 2026

A woman hands papers to a court registry clerk as her phone lights up with a notification.

Rebecca Marie's employment ended on 16 May 2024. She sued her former employer in the Federal Court, claiming breaches of the general protections in the Fair Work Act. At mediation the case settled. A deed of release dated 31 March 2025 required the employer to pay $15,000, without admitting liability, within 14 days of receiving her signed deed. The deed had no clause making time 'of the essence'.

She returned the signed deed that same day. The money did not come. On 23 April 2025, nine days after it was due, she lodged an application at 12.40pm asking the Court to reopen her case and either enforce the deed or set it aside. At 12.41pm she was told the money had been paid. She kept it and pressed on, seeking extra compensation and penalties for the stress the delay had caused. The employer offered her an extra $100; interest on the late payment would have been about $30.

Justice McElwaine dismissed the application. The deed released her original claim, and a breach of a settlement gives rise to a new claim on the settlement; it does not bring the old case back to life. Paying late breached a time limit that was not essential, which is no ground to undo a compromise. Once the money was paid there was nothing left to enforce, setting the deed aside would need a new proceeding, and her claims about stress raised contested questions that could not be decided this way.

She had been right to file before the payment arrived. But, acting reasonably, she should have withdrawn once it did, so she was ordered to pay the employer's costs from 30 April 2025. The usual protection against costs in Fair Work cases did not help her, because this application was about a breach of contract.

What it means for you

If an employer pays a settlement late, the usual remedy is to enforce the deed, not to restart the original claim. Once the money arrives, think carefully before pressing on, because continuing the dispute can cost you.

Marie v Trustee for Aspire Residences Unit Trust [2026] FCA 553

A published decision of the Federal Court of Australia, retold in plain English. Lawcaptain did not act in this case. Every outcome depends on its own facts. General information, not legal advice about your situation.

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