Shockthorap v Electricity Network Corporation Trading as Western Power

In *Shockthorap v Electricity Network Corporation Trading as Western Power*, the applicant, Mr Shockthorap, brought a claim against the respondent, Electricity Network Corporation trading as Western Power, alleging breaches of general protections under the *Fair Work Act 2009* (Cth). The dispute centred on whether a mediated settlement agreement reached between the parties was a binding contract, notwithstanding the applicant's subsequent assertion of unilateral mistake. The application for summary dismissal was heard by Judge Kendall in the Federal Court of Australia.

The primary legal issue before the Court was whether the mediated settlement agreement constituted a legally binding contract. This involved determining whether the parties had reached a consensus on essential terms and intended to be legally bound by their agreement. A secondary issue was whether the applicant's claim of unilateral mistake, communicated after the mediation, vitiated the formation of a binding contract. The Court also considered the factors relevant to an application for summary dismissal, specifically whether the applicant's claim had reasonable prospects of success.

Judge Kendall found that the parties had reached a binding settlement agreement during the mediation. The Court reasoned that the conduct of the parties, including their agreement to the terms presented and the subsequent actions taken in reliance on that agreement, demonstrated a clear intention to be bound. The applicant's attempt to resile from the agreement based on a unilateral mistake, which was not known to the respondent at the time of settlement, was insufficient to invalidate the contract. The Court applied the principles of contract formation, emphasizing the objective assessment of the parties' intentions and the binding nature of agreements reached in mediation.

Consequently, the Court concluded that the applicant's claim had no reasonable prospects of success and allowed the respondent's application for summary dismissal.