PERRY & GLENN

The parties to this proceeding were Perry and Glenn. The dispute concerned the interpretation of a deed of settlement and release, and specifically whether Glenn was entitled to recover certain legal costs from Perry under its terms. The matter came before Burchardt J of the Supreme Court of Tasmania.

The central legal issue before the Court was whether the phrase "any costs incurred by the party in relation to the settlement" as used in clause 10.1 of the deed encompassed legal costs incurred by Glenn in defending proceedings brought by Perry, or if it was limited to costs directly associated with the negotiation and finalisation of the settlement agreement itself.

Burchardt J reasoned that the ordinary and natural meaning of the words in clause 10.1, when read in context, indicated that "costs incurred by the party in relation to the settlement" was intended to be a broad category. His Honour considered that the phrase was not confined to costs of negotiation but extended to costs reasonably incurred in bringing about the settlement, which included the defence of proceedings that were a necessary precursor to or part of the overall settlement process. The Court applied principles of contractual interpretation, focusing on the plain meaning of the words used and the commercial context of the agreement.

The Court ordered that Glenn was entitled to recover the legal costs claimed from Perry pursuant to clause 10.1 of the deed.