Godfrey Spowers (Victoria) Pty Ltd v Lincolne Scott Australia Pty Ltd

Godfrey Spowers (Victoria) Pty Ltd was the plaintiff and sought damages from Lincolne Scott Australia Pty Ltd, the defendant, for alleged breaches of contract. The dispute reached the Supreme Court of Victoria where the plaintiff sought to overturn a summary judgment. The court had to decide whether Part IVAA of the Wrongs Act 1958 (Vic) applied to compromise cases, specifically whether section 24AO applied when damages were settled between the parties. A further issue was whether the trial judge was correct in applying section 24AJ(1) to determine the plaintiff's potential proportionate liability based on the settlement amount.

The court examined the inter-relationship between Parts IV and IVAA of the Act. It found that Part IVAA did indeed apply to compromise cases and that section 24AO could be invoked in such circumstances. The court held that the trial judge had erred in using the settlement amount to assess the plaintiff's potential proportionate liability under section 24AI(1). The court concluded that the settlement amount should not have been considered in determining the plaintiff's proportionate liability as it was not a reflection of the actual liability but rather a compromise figure. The appeal was allowed, and the respondents' oral application under r 23.01 of Chapter 1 of the Rules was dismissed.