Wilson v Daco Developments Pty Limited [2020] NSWSC 1441

Wilson v Daco Developments Pty Limited [2020] NSWSC 1441

The 20 April 2018 settlement agreement, objectively construed in light of the correspondence, preserved only a verification mechanism for the Daco Interest Payments and Further Funding Payments and deliberately excluded claims for interest and mutual costs while that mechanism operated. The defendants' delay was not shown to be unreasonable because the plaintiffs were obliged to provide supporting documentation and the Court record showed repeated document-production issues. The plaintiffs' later refusal from 13 June 2019 to sign appropriate orders discontinuing the remaining proceedings caused unnecessary costs from 14 June 2019, but the 14 June 2019 letter was only a warning and not a...

Jurisdiction
Australia
Judgment Date
20 October 2020
Procedural Posture
Equity Proceedings Concerning Settlement Compromise, Interest and Costs / Principal Judgment on Dispute Under Civil Procedure Act 2005, S 73 After Partial Discontinuance of Settled Proceedings
Outcome
Costs and interest not awarded to the plaintiffs. Plaintiffs ordered to pay the second defendant's costs on the ordinary basis from 14 June 2019. Proceedings otherwise dismissed.
Legal Topics
['compromise of Proceedings' 'construction of Settlement Agreement' 'interest Under Civil Procedure Act 2005, S 100' 'costs After Settlement' 'indemnity Costs']
['civil Procedure' 'costs' 'contract Law'] ['compromise of Proceedings' 'construction of Settlement Agreement' 'interest Under Civil Procedure Act 2005, S 100' 'costs After Settlement' 'indemnity Costs']

Case Brief

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Procedural Posture

Equity Proceedings Concerning Settlement Compromise, Interest and Costs / Principal Judgment on Dispute Under Civil Procedure Act 2005, S 73 After Partial Discontinuance of Settled Proceedings

Legal Issues

  1. 1 ['Whether and on what terms the proceedings were compromised under Civil Procedure Act 2005, s 73.' 'Whether the plaintiffs were entitled to interest under Civil Procedure Act 2005, s 100 on delayed payments under the settlement agreement.' 'Whether the plaintiffs should receive costs of pursuing the delayed payments after 3 May 2018.' "Whether the plaintiffs should pay the second defendant's costs of the present application, and whether those costs should be on an indemnity basis."]

Ratio Decidendi

The 20 April 2018 settlement agreement, objectively construed in light of the correspondence, preserved only a verification mechanism for the Daco Interest Payments and Further Funding Payments and deliberately excluded claims for interest and mutual costs while that mechanism operated. The defendants' delay was not shown to be unreasonable because the plaintiffs were obliged to provide supporting documentation and the Court record showed repeated document-production issues. The plaintiffs' later refusal from 13 June 2019 to sign appropriate orders discontinuing the remaining proceedings caused unnecessary costs from 14 June 2019, but the 14 June 2019 letter was only a warning and not a...

Court Disposition

Costs and interest not awarded to the plaintiffs. Plaintiffs ordered to pay the second defendant's costs on the ordinary basis from 14 June 2019. Proceedings otherwise dismissed.

Orders

  • ["Dismiss the plaintiffs' claim for the accrual of interest from 20 April 2018 on money due but unpaid under a settlement agreement of that date." "Dismiss the plaintiffs' claim for an order for costs in their favour from 3 May 2018 as agreed or assessed." "Order the plaintiffs to pay the second defendant's costs...