Clisbey & Vas

The applicant, Clisbey, sought to have a deed of settlement and release, entered into with the respondent, Vas, set aside. The dispute concerned allegations of misleading and deceptive conduct and breach of fiduciary duty in relation to the sale of shares in a company. The application was heard by Stevenson J in the Supreme Court of New South Wales.

The primary legal issue before the Court was whether the applicant had established a sufficient basis to set aside the deed of settlement and release. This involved determining whether the applicant had been induced to enter into the deed by misleading or deceptive conduct, or whether the respondent had breached a fiduciary duty owed to the applicant. The Court also considered the principles governing the setting aside of deeds of settlement, particularly in circumstances where parties have had the benefit of independent legal advice.

Stevenson J found that the applicant had failed to establish the necessary elements for setting aside the deed. The Court concluded that there was no evidence of misleading or deceptive conduct by the respondent that induced the applicant to enter into the settlement. Furthermore, the Court determined that no fiduciary duty was owed by the respondent to the applicant in the context of the share sale and subsequent settlement. The principles applied by the Court emphasised the importance of upholding deeds of settlement, particularly when parties have received independent legal advice, and the high threshold required to displace such agreements.

Consequently, the application filed on 15 December 2009 was dismissed.