The Owners Strata Plan No 92183 v Samdora Pty Ltd

The Owners Strata Plan No 92183 brought a claim against Samdora Pty Ltd in relation to alleged building defects. The dispute was heard in the Supreme Court of New South Wales. The key issue before the court was whether the settlement agreement reached in earlier proceedings included a release that would bar the current proceedings. The central question was whether the settlement agreement, which was contained in a draft deed circulated without instructions to ‘open discussions’, was binding despite the fact that the draft deed was ultimately abandoned in subsequent negotiations.

The court considered the principles of summary dismissal, as well as the principles of ascertaining contractual terms and the effect of post-contractual conduct. The court found that the draft deed did not constitute a binding agreement as it was circulated without clear instructions to commence negotiations, and it was subsequently abandoned. The court emphasised the importance of clear communication and instructions in the negotiation process to avoid misunderstandings and disputes over the terms of an agreement. The court also noted that the parties’ subsequent conduct, including their abandonment of the draft deed, was relevant in determining whether a binding agreement had been reached.

Based on the court’s reasoning, it was determined that the settlement agreement did not include a release barring the current proceedings. The court dismissed the defendant’s application for summary dismissal, allowing the claim to proceed. The court found that there were genuine issues to be tried in relation to the building defects and the terms of the settlement agreement. The parties were required to proceed with the litigation to resolve the dispute.