JADOS & KAILEY (No.2)

The parties to this proceeding were Jados and Kailey. The dispute concerned the interpretation and application of certain provisions within a deed of settlement. The matter came before Young J in the Supreme Court of New South Wales.

The central legal issue before the Court was whether the settlement deed, which contained a clause requiring the parties to use their best endeavours to resolve future disputes, had been breached by Kailey's conduct. Specifically, the Court had to determine if Kailey's actions constituted a failure to use best endeavours as contemplated by the deed.

Young J reasoned that the phrase "best endeavours" required a party to take all reasonable steps that a prudent person, acting in their own interests and actively pursuing their rights, would take to achieve the stipulated objective. His Honour considered the specific circumstances of the dispute and the actions taken by Kailey, concluding that these actions fell short of the standard required by the best endeavours clause. The Court applied the established legal principles regarding the interpretation of contractual obligations to use best endeavours, emphasising the proactive and diligent nature of such a commitment.

The Court found that Kailey had breached the settlement deed.