Khanty-Mansiysk Recoveries Ltd v Forsters Llp

Khanty-Mansiysk Recoveries Ltd v Forsters Llp

The Settlement Agreement, by its express and wide wording, released all claims, known or unknown, suspected or unsuspected, arising out of or in connection with the action or invoice, including the present claim for breach of contract and/or negligence. The context did not limit the scope of the release, and the claim is therefore barred.

Parties
Claimant: Khanty-Mansiysk Recoveries Limited; Respondent: Forsters LLP
Jurisdiction
England and Wales
Judgment Date
22 March 2016
Procedural Posture
Commercial Claim (breach of Contract/negligence) / Summary Judgment Application on Threshold Issue (effect of Settlement Agreement)
Outcome
Claim barred by Settlement Agreement; declaration granted in favour of Forsters LLP
Legal Topics
Settlement Agreements, General Release Clauses, Interpretation of Contracts, Solicitor's Duties, Assignment of Claims
Contract Law Professional Negligence Settlement Agreements General Release Clauses Interpretation of Contracts Solicitor's Duties Assignment of Claims

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Parties

Khanty-Mansiysk Recoveries Limited

Claimant

Forsters LLP

Respondent

Procedural Posture

Commercial Claim (breach of Contract/negligence) / Summary Judgment Application on Threshold Issue (effect of Settlement Agreement)

Legal Issues

  1. 1 Whether the Settlement Agreement bars the present claim by KMR against Forsters
  2. 2 Proper construction of the release clause in the Settlement Agreement
  3. 3 Whether the Settlement Agreement is void for common mistake

Ratio Decidendi

The Settlement Agreement, by its express and wide wording, released all claims, known or unknown, suspected or unsuspected, arising out of or in connection with the action or invoice, including the present claim for breach of contract and/or negligence. The context did not limit the scope of the release, and the claim is therefore barred.

Court Disposition

Claim barred by Settlement Agreement; declaration granted in favour of Forsters LLP

Orders

  • Declaration that the claim is barred by the Settlement Agreement
  • Counsel to agree draft order on costs and directions; failing agreement, court to determine outstanding issues