Meagher v McDonald

The case of Meagher v McDonald involves a dispute regarding the payment of a settlement sum under a deed of settlement. The matter was heard in the Queensland Supreme Court. The plaintiffs, Meagher and MCG Group Pty Ltd, sought summary judgment against the defendants, Kaye and Jacob McDonald, and Paul McDonald, in relation to the payment of the third tranche of a settlement sum under a deed dated 16 May 2017. The third tranche was contingent upon the making of a final distribution by the trustees of a bankrupt estate to nominated parties. Despite the bankruptcy coming to an end, no sum was paid by the trustees to either of the nominated parties, and the defendants failed or refused to pay the third tranche.

The central legal issue before the court was the proper construction of the 2017 Deed and its implications on the payment of the third tranche of the settlement sum. The court was required to determine whether the third tranche was payable and, if so, when it was due. The defendants argued that the third tranche was conditional upon the payment by the trustees to the nominated parties, which did not occur. The plaintiffs contended that the third tranche was payable regardless of the trustees' actions, as the condition precedent related to the making of the final distribution by the trustees, not the actual payment to the nominated parties.

The court examined the language of the 2017 Deed and found that the third tranche was indeed payable within 14 days of the making of the final distribution by the trustees, irrespective of whether the trustees had paid the sum to the nominated parties. The court held that the condition precedent was satisfied by the trustees making the final distribution, and therefore, the third tranche was payable by the defendants. The court granted the plaintiffs' application for summary judgment, finding that the defendants had no real prospect of successfully defending the claim.

The court ordered that the defendants pay the third tranche of the settlement sum to the plaintiffs within 14 days of the final distribution by the trustees. The court also dismissed the defendants' cross-application for summary judgment and their alternative application to strike out the plaintiffs' amended statement of claim.