Vero Insurance Ltd v Tran

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New South Wales


Court of Appeal


CITATION: Vero Insurance Ltd v Tran [2008] NSWCA 358
HEARING DATE(S): 15 December 2008
JUDGMENT OF: Macfarlan JA at 1, 20, 22; Gyles AJA at 2; Handley AJA at 21
EX TEMPORE JUDGMENT DATE: 15 December 2008
DECISION: Appeal dismissed with costs.
CATCHWORDS: CONTRACTS - specific performance - where memorandum setting agreement of mediation contained unfinalised parts - whether memorandum an enforceable agreement or merely an agreement to agree - construction of clauses of agreement to mediate as to means of reaching settlement - MEDIATION - where memorandum setting agreement of mediation contained unfinalised parts - whether memorandum an enforceable agreement or merely an agreement to agree - construction of clauses of agreement to mediate as to means of reaching settlement
CATEGORY: Principal judgment
PARTIES: Vero Insurance Ltd - Appellant
Minh Ai Tran - First Respondent
Thi Nguyen Phan - Second Respondent
Full Brick Homes Pty Limited (ACN 063 559 946) - Third Respondent
Martin Barratt - Fourth Respondent
Maureen Barratt - Fifth Respondent
Ian Harley Bailey - Sixth Respondent
FILE NUMBER(S): CA 40125/08
COUNSEL: TGR Parker SC and PJ Bambagiotti - Appellant
F Corsaro SC and B Bradley - First and Second Respondents
SOLICITORS: Mills Oakley - Appellant
Just in Case Legal - First and Second Respondents
LOWER COURT JURISDICTION: Supreme Court - Equity Division
LOWER COURT FILE NUMBER(S): SC 5172/06
LOWER COURT JUDICIAL OFFICER: Hamilton J
LOWER COURT DATE OF DECISION: 22 April 2008
LOWER COURT MEDIUM NEUTRAL CITATION: Vero Insurance Ltd v Tran [2008] NSWSC 363




                          40125/08

                          MACFARLAN JA
                          HANDLEY AJA
                          GYLES AJA

                          Monday, 15 December 2008
VERO INSURANCE LIMITED v MINH AI TRAN & 5 ORS
Judgment

1 MACFARLAN JA: Acting Justice Gyles will deliver the first judgment.

2 GYLES AJA: This is an appeal from the dismissal of a specific performance suit seeking enforcement of what was said to be an agreement reached at a mediation to settle finally a District Court building dispute. The primary judge founded his decision upon his construction of the agreement to mediate. The mediation agreement, which was entered into on the day before the mediation took place, had provisions which dealt with the question of settlement and enforcement. They were clauses 9 and 10, which are as follows:

          “9. The Mediation may be terminated:

              (a) by agreement between the parties to terminate the mediation.

              (b) upon execution of a Settlement Agreement in respect of the proceedings;

              (c) by the Mediator giving written or oral notification to the parties if, after consultation with the parties, the Mediator forms the view that the Mediator will be unable for whatever reason to assist the parties to achieve resolution of the proceedings.
          10. (a) In the event that one or more of the disputed issues is or are settled, as the case may be, either of the parties is at liberty to enforce the terms of the settlement agreement by judicial proceedings.
              (b) In those proceedings the parties may adduce evidence of and incidental to…
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Details
Case
[2008] NSWCA 358
Decision Date

CaseChat Overview and Summary

Vero Insurance Ltd (appellant) appealed a decision of the Supreme Court of New South Wales concerning a memorandum that recorded an agreement to mediate. The dispute centred on whether this memorandum constituted an enforceable agreement or merely an agreement to agree, particularly in light of certain unfinalised aspects within its terms.

The primary legal issue before the Court of Appeal was the proper construction of the memorandum and its clauses relating to the means of reaching a settlement through mediation. Specifically, the court had to determine if the memorandum created binding obligations or if it was void for uncertainty due to the unfinalised elements.

The Court of Appeal, in dismissing the appeal, reasoned that the memorandum, when construed as a whole, established a binding agreement to mediate. The court applied principles of contractual construction, finding that the unfinalised parts did not render the agreement void for uncertainty. Instead, the court determined that the parties had agreed to the process of mediation as a means to resolve their dispute, and that this agreement was sufficiently certain to be enforceable. The court found that the memorandum did not merely represent an agreement to agree, but rather an agreement to engage in a specific process with the intention of reaching a settlement. The appeal was accordingly dismissed with costs.

Orders

Orders of the court

Appeal dismissed with costs. (per Gyles AJA, the remainder of the Court agreeing)

Background

Background to the litigation

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Evidence

Evidence Before The Court

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Decision

Reasons for decision

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Ratio Decidendi

Legal Principle Established

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