McAskell & Anor v Cavendish Properties Ltd & Ors

The matter before the court involved the plaintiffs, McAskell and another, and the defendants, Cavendish Properties Ltd and others. The dispute centred on a request by the sixth and seventh defendants for discovery of documents relating to a confidential settlement agreement between the plaintiffs and the first to fifth defendants. This settlement was pertinent to claims involving proportionate liability. The request for discovery was made under the Wrongs Act 1958 (Vic), Part IVAA, which deals with confidential settlement agreements and their admissibility in subsequent proceedings.

The primary legal issue the court had to address was whether the terms of the settlement agreement between the plaintiffs and the first to fifth defendants were relevant to any fact in issue in the current proceedings. The court needed to determine if the confidential nature of the settlement could be overridden by the need for the sixth and seventh defendants to access these documents. The court considered the purpose of Part IVAA, which is to encourage settlements by ensuring that confidential terms are not disclosed in subsequent litigation, and whether this purpose would be undermined by allowing discovery in the present case.

The court examined the principles set out in the Wrongs Act 1958 (Vic), Part IVAA, which protect the confidentiality of settlement agreements. It held that the terms of a confidential settlement agreement are generally not admissible in evidence in subsequent proceedings and are not discoverable. The court found that the sixth and seventh defendants' need for the documents did not outweigh the policy behind protecting the confidentiality of such agreements. Consequently, the court denied the request for discovery, reaffirming the importance of maintaining the confidentiality of settlement agreements to foster a conducive environment for resolving disputes without fear of subsequent litigation.

The final orders of the court were that the sixth and seventh defendants' application for discovery of the confidential settlement agreement between the plaintiffs and the first to fifth defendants was dismissed. The court emphasised that the protection of confidential settlements is crucial for encouraging parties to resolve disputes outside of formal litigation, thereby promoting a more efficient and less adversarial legal process.