Macura v Sarasevic [2019] NSWSC 1409

Macura v Sarasevic [2019] NSWSC 1409

It was not established on the balance of probabilities that Mr Macura lacked capacity to enter the settlement agreement as at 20 March 2018, and even if incapacity were present, it was not proven that the executors had actual or constructive knowledge of that incapacity. Thus, the settlement agreement reached at mediation stands and is not voidable for incapacity.

Jurisdiction
Australia
Judgment Date
18 October 2019
Procedural Posture
Family Provision, Contractual Dispute / Principal Judgment Following Hearing on Notice of Motion for Declaratory Relief and Consequential Orders
Outcome
Settlement agreement upheld; orders made enforcing agreement; cross-claim dismissed
Legal Topics
['mental Incapacity' 'settlement Agreements' 'adjournment' 'family Provision' 'knowledge of Incapacity' 'legal Capacity' 'estoppel']
['equity' 'civil Procedure' 'contracts' 'succession'] ['mental Incapacity' 'settlement Agreements' 'adjournment' 'family Provision' 'knowledge of Incapacity' 'legal Capacity' 'estoppel']

Case Brief

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Procedural Posture

Family Provision, Contractual Dispute / Principal Judgment Following Hearing on Notice of Motion for Declaratory Relief and Consequential Orders

Legal Issues

  1. 1 ['Whether the settlement agreement reached at mediation should be set aside on grounds of incapacity' 'Whether the plaintiff had capacity to enter the settlement agreement' 'Whether the defendants had knowledge (actual or constructive) of any incapacity' 'Prejudice from delay and adjournments' 'Principles governing adjournment and procedural fairness']

Ratio Decidendi

It was not established on the balance of probabilities that Mr Macura lacked capacity to enter the settlement agreement as at 20 March 2018, and even if incapacity were present, it was not proven that the executors had actual or constructive knowledge of that incapacity. Thus, the settlement agreement reached at mediation stands and is not voidable for incapacity.

Court Disposition

Settlement agreement upheld; orders made enforcing agreement; cross-claim dismissed

Orders

  • ['Declaration of settlement agreement as per Short Minutes of Orders signed on 20 March 2018 and formalised on 23 March 2018' 'Provision to plaintiff of $100,000 out of the estate of the late Milorad Adzic' 'No interest to be paid if lump sum is paid within 28 days; otherwise, interest prescribed under s 84A(3)...