Kuehn & Kuehn v Masterton Homes (NSW) Pty Ltd

The plaintiffs, Kuehn & Kuehn, sued the first defendant, Masterton Homes (NSW) Pty Ltd, for damages over the alleged defective construction of their home. The defendant raised a defence in the Supreme Court of New South Wales, claiming that on 29 July 2019, when the proceedings were before the NSW Civil & Administrative Tribunal, a binding compromise or settlement of the claims of both plaintiffs was entered into. The plaintiffs denied this assertion.

The court needed to determine whether a compromise or settlement had indeed been made and, if so, whether it was binding. The court examined the evidence presented by both parties and considered whether the objective intention of the parties was to create a binding arrangement. The court also considered whether the other plaintiff was a party to any arrangement and whether the terms of any agreement were embodied in a formal deed signed by all parties.

The court found that no binding compromise or settlement was entered into. The court held that the other plaintiff was not a party to any arrangement and, in any event, the objective intention of the parties was that there would be no binding arrangement until the terms of it were embodied in a formal deed signed by all parties. Therefore, the defence of compromise or settlement was unsuccessful.

The court dismissed the defendant's defence and the plaintiffs' claims proceeded to trial. The final orders of the court were that the defendant's defence of compromise or settlement was dismissed, and the plaintiffs' claims would proceed to trial.