Wayne Laurence Savage v Rebecca Ferguson [No 2]

Wayne Laurence Savage sought costs from the estate of his deceased mother, Rebecca Ferguson, under a Calderbank letter. The case was heard by the Supreme Court of Victoria. Savage's mother had passed away during the proceedings, and the estate's executor, her daughter, disputed Savage's claim. The dispute centred on the enforceability of the Calderbank letter, which Savage argued committed the estate to cover his costs if he succeeded in his claim. The court was required to determine whether the Calderbank letter was binding on the estate and if the principle of no issue of principle applied.

The court held that the Calderbank letter was indeed binding on the estate, as it was a valid contractual agreement. The court found that the principle of no issue of principle applied, meaning that the estate could not avoid liability for costs merely because it had a good defence. The court emphasised that the Calderbank letter's enforceability was not dependent on the estate's acceptance of the merits of Savage's claim. Instead, the estate was bound by the terms of the letter, regardless of the merits of the claim.

As a result, the court ordered the estate to pay Savage's costs, as per the Calderbank letter. The court noted that the estate was not entitled to challenge the enforceability of the letter simply because it disagreed with the claim's merits. The court also highlighted that the principle of no issue of principle applied, meaning that the estate could not avoid liability for costs based on its defence. The decision underscored the importance of clear and unambiguous terms in Calderbank letters to ensure enforceability.

The final orders included the estate paying Savage's costs as per the Calderbank letter, with no issue of principle affecting the enforceability of the agreement. The court's decision reinforced the binding nature of Calderbank letters and the application of the no issue of principle principle in such cases.