The Owners Strata Plan No 76502 v Waterpoint Shepherds Bay Pty Limited

In the case of The Owners Strata Plan No 76502 v Waterpoint Shepherds Bay Pty Limited, the dispute arose from a strata plan where the plaintiff sought to enforce an offer to settle the litigation. The defendant had made a settlement offer, open for 28 days, which the plaintiff accepted on the 28th day. The central issue before the court was whether the timing of acceptance, being later in the day than the time of the offer, affected the validity of the acceptance under common law principles. Additionally, the court had to consider whether the plaintiff’s inquiry about a potentially better offer constituted a counter-offer, thereby rejecting the initial settlement proposal.

The court examined the common law position regarding the significance of fractions of days in the context of settlement offers. It concluded that the time of acceptance being slightly later on the 28th day did not invalidate the acceptance. The court also found that the plaintiff’s inquiry about a potentially better offer did not amount to a counter-offer that would have rejected the defendant’s initial settlement proposal. Instead, the inquiry was seen as a legitimate attempt to explore the possibility of a more favourable settlement. Furthermore, the court held that the phrase ‘on terms requiring each party to pay its own costs of the proceedings’ did not imply an expectation for further terms to be negotiated. Consequently, the requirement for a deed of release was not part of the initial offer, and the defendant’s insistence on such a document post-acceptance was not permissible.

In summary, the court upheld the validity of the settlement offer and its acceptance, dismissing the defendant's attempts to impose additional conditions post-acceptance. The court's ruling reinforced the importance of clarity in settlement offers and the consequences of overlooking detailed terms. The final orders of the court will reflect the enforcement of the settlement agreement as accepted by the plaintiff.