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 RespondentFILE NUMBER(S): CA 40125/08 COUNSEL: TGR Parker SC and PJ Bambagiotti - Appellant
F Corsaro SC and B Bradley - First and Second RespondentsSOLICITORS: Mills Oakley - Appellant
Just in Case Legal - First and Second RespondentsLOWER 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
Monday, 15 December 2008MACFARLAN JA
HANDLEY AJA
GYLES AJA
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.
(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.(b) upon execution of a Settlement Agreement in respect of the proceedings;
- (b) In those proceedings the parties may adduce evidence of and incidental to…
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- Case
- [2008] NSWCA 358
- Decision Date
CaseChat Overview and Summary
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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