Australian Prime Realty Pty Limited v Greenstein & Anor

The case of Australian Prime Realty Pty Limited v Greenstein & Anor involves a dispute concerning professional negligence. Australian Prime Realty Pty Limited, the plaintiff, alleged that the defendant, Greenstein, committed professional negligence in providing real estate services. The case was settled following mediation, and the plaintiff accepted an offer made by the defendant. The settlement included a deed of release. However, a deed of settlement was not concluded, leading to a dispute over whether a binding agreement had been entered into. The matter was brought before the court to determine the enforceability of the settlement reached during mediation.

The primary legal issue before the court was whether a binding agreement had been made between the parties, despite the absence of a formal deed of settlement. The court had to consider the circumstances surrounding the mediation and the terms of the offer accepted by the plaintiff. Additionally, the court examined the content and effect of the deed of release, which was executed following the settlement. The central question was whether the parties' conduct and the executed deed of release were sufficient to establish a binding agreement, even in the absence of a formal deed of settlement.

The court held that the conduct of the parties and the executed deed of release constituted a binding agreement. The court found that the settlement reached during mediation was enforceable, and the absence of a formal deed of settlement did not negate the enforceability of the agreement. The court emphasised that the parties' conduct, including the acceptance of the offer and the execution of the deed of release, demonstrated a clear intention to be bound by the terms of the settlement. The court concluded that the settlement was binding, and the parties were required to adhere to the terms as agreed upon during mediation.

The court made orders to enforce the settlement as a binding agreement. The parties were directed to conclude a deed of settlement that reflects the terms agreed upon during mediation. The court also ordered that the settlement amount be paid by the defendant to the plaintiff, in accordance with the terms of the deed of release. The orders ensured that the settlement reached during mediation was given effect, and the parties were held to their agreement.