MOFFAT & NEARY

The parties to this proceeding were Moffat and Neary. The dispute concerned the interpretation and application of a deed of settlement and release. The matter came before Newbrun J in the Supreme Court of New South Wales.

The primary legal issue before the Court was whether the deed of settlement and release, which purported to release all claims between the parties, extended to claims that were not in existence at the time the deed was executed. A secondary issue concerned the proper construction of a specific clause within the deed relating to the release of future claims.

Newbrun J's reasoning focused on the established principles of contractual interpretation. His Honour considered the plain language of the deed, giving particular attention to the words "all claims, demands, actions and proceedings whatsoever which now are or hereafter may be or but for this Deed might have been existing or capable of being brought or made by or on behalf of the Releasor against the Releasee". His Honour concluded that the inclusion of "hereafter may be" indicated an intention to release claims that might arise in the future, not merely those in existence at the time of execution. The Court applied the principle that clear and unambiguous language in a contract will be given its ordinary meaning, even if it has significant consequences for the parties.

The Court found that the deed effectively released the claims in question.