Salvato v Commonwealth Bank of Australia (No 2)

In the Federal Court of Australia, Salvato brought an action against the Commonwealth Bank of Australia. The dispute involved a contractual release and issue estoppel under a deed, where Salvato sought to revive issues that were expressly released. The bank argued that Salvato was estopped from agitating these matters and sought costs. The central legal issues before the court were whether Salvato was estopped from pursuing claims that were released under the deed, and whether the bank was entitled to costs for the litigation.

The court considered whether the release in the deed was broad enough to encompass the claims that Salvato attempted to revive. It was held that the release was indeed comprehensive, extending to all past, present, and future claims. The court further found that Salvato was estopped from pursuing these claims, as they were unequivocally released. The bank's argument for costs was also considered, and it was determined that Salvato's attempt to agitate the released issues was vexatious. Therefore, the bank was awarded costs for the unnecessary litigation.

The Federal Court of Australia dismissed Salvato's action and ordered that the bank recover its costs associated with the proceedings. The court emphasised the importance of adhering to contractual releases and the consequences of attempting to revive issues that have been settled. The decision reinforces the principle that parties must honour agreements and that vexatious litigation will be met with sanctions, including costs.