Meki Jnr Puletua by his Tutor Sosefina Puletua v Sydney Childrens Hospital

Meki Jnr Puletua, through his tutor Sosefina Puletua, sought to rescind an approved settlement with Sydney Children's Hospital. The dispute centred on the settlement of a claim initiated on behalf of Meki, a person under legal incapacity, against the hospital. The court had to determine whether the resiling from the settlement, citing a material change in circumstances, was lawful or if it constituted an improper repudiation of the agreement. The case was heard in the Supreme Court of New South Wales, sitting in its equity division.

The primary legal issue before the court was whether Meki's resiling from the approved settlement was justified, given that he cited a material change in circumstances. The court had to consider the principles governing the approval of settlements involving parties under legal incapacity, as well as the authority to determine questions about compromise and settlement under the Civil Procedure Act 2005. The court also needed to assess if the change in circumstances was significant enough to warrant the rescission of the settlement.

The court held that the power to approve a settlement of proceedings commenced by or on behalf of a person under legal incapacity includes the authority to determine questions about compromise and settlement. The court examined the evidence and found that the material change in circumstances was not sufficient to justify the rescission of the settlement. The court concluded that Meki's attempt to resile from the settlement was an improper repudiation of the agreement. Consequently, the court dismissed the application for rescission.

The Supreme Court ordered that the settlement approved by the court remains in effect, and the parties are bound by its terms. The court emphasised that the approval of a settlement by a judge signifies the finality of the agreement, and rescission should only be permitted in exceptional circumstances. This decision underscores the importance of adhering to the terms of approved settlements in cases involving parties under legal incapacity.