DOUGLASS & JAEGER

The parties to this proceeding were Douglass and Jaeger. The dispute concerned the interpretation of a clause within a deed of settlement, specifically regarding the calculation of a deferred payment. The matter came before Egan J of the Supreme Court of New South Wales.

The central legal issue before the court was whether the deferred payment, which was contingent on the net profit of a business, was to be calculated by reference to the profit of the business as a whole, or only the profit attributable to a specific part of the business. This required the court to construe the relevant clause of the deed of settlement.

Egan J's reasoning focused on the plain language of the deed. His Honour determined that the wording of the clause, when read in its entirety and in context, clearly indicated that the profit to be considered was that of the business as a whole. The court applied principles of contractual interpretation, emphasising the importance of giving effect to the ordinary meaning of the words used by the parties in the document.

The court found in favour of Jaeger, ordering that the deferred payment be calculated by reference to the net profit of the business as a whole.