ACQ Pty Limited v Cook & Anor; Aircair Moree Pty Limited v Cook & Anor

ACQ Pty Limited and Aircair Moree Pty Limited (the appellants) appealed to the High Court of Australia from a decision of the Supreme Court of New South Wales. The dispute concerned the interpretation of a clause in a deed of settlement and release, which purported to release the appellants from liability for certain claims. The respondents, Mr. and Mrs. Cook, argued that the release did not extend to the specific claims they brought, which related to alleged breaches of duty by the appellants.

The central legal issue before the High Court was whether the release clause in the deed of settlement was sufficiently clear and unambiguous to encompass the respondents' claims. Specifically, the Court had to determine if the language used in the release operated to extinguish the respondents' rights to pursue those particular causes of action, or if the claims fell outside the scope of the intended release.

The High Court held that the deed of settlement and release was to be construed according to its plain language. Applying principles of contractual interpretation, their Honours found that the wording of the release clause was not sufficiently precise to cover the respondents' claims. The Court reasoned that a release of legal rights must be expressed in clear and unequivocal terms, and where there is ambiguity, the construction that preserves the respondents' rights is to be preferred. The Court noted that the specific causes of action pursued by the respondents were not clearly identified or described in a manner that would indicate they were intended to be released by the deed.

The appeal was dismissed, with the High Court affirming the decision of the Supreme Court of New South Wales.