Power v Schembri

Power and another v Schembri and another involved a dispute over the interpretation of a settlement deed and the liability of the defendants. The plaintiffs alleged that the second defendant was jointly and severally liable for the first defendant’s breaches under the settlement deed. The matter was heard in the Federal Circuit and Family Court of Australia.

The central legal issue the court had to determine was whether the settlement deed intended to impose joint and several liability on the second defendant for the first defendant’s breaches. The plaintiffs argued that the deed explicitly included such liability, while the second defendant contended that the wording did not support this interpretation.

The court found in favour of the second defendant, granting summary judgement under rule 293. It held that there was no real prospect of success for the plaintiffs' claim against the second defendant, as the settlement deed did not clearly or unequivocally impose joint and several liability on the second defendant. Consequently, the court dismissed the plaintiffs' claim against the second defendant and ordered the plaintiffs to pay the second defendant’s costs of the proceeding.