Savage v Lunn

In *Savage v Lunn*, the New South Wales Court of Appeal considered a dispute between the parties concerning the proper construction of a deed of settlement. The plaintiffs, Savage and others, sought to enforce certain terms of the deed against the defendants, Lunn and others.

The central legal issue before the Court of Appeal was whether the deed of settlement, which purported to resolve a prior dispute between the parties, contained an enforceable agreement for the defendants to indemnify the plaintiffs against any future claims made by a third party, Mr. G. The court had to determine the scope and meaning of the indemnity provision within the deed.

The Court of Appeal, in its reasoning, focused on the principles of contractual interpretation. It held that the language of the deed, when read as a whole and in light of the surrounding circumstances known to the parties at the time of its execution, did not support the plaintiffs' contention that a clear and unequivocal promise of indemnity against future claims by Mr. G had been made. The court found that the wording of the indemnity clause was ambiguous and did not extend to the specific type of future claim that had arisen. Consequently, the court concluded that the plaintiffs had not established a breach of the deed by the defendants.