Zukerman v Zukerman

The New South Wales Court of Appeal considered a dispute between the appellants, Zukerman and another, and the respondent, Zukerman. The core of the disagreement concerned the proper construction and effect of a deed of settlement entered into between the parties.

The primary legal issue before the Court of Appeal was whether the deed of settlement, which purported to resolve all claims between the parties, effectively extinguished a specific claim for damages arising from alleged breaches of fiduciary duty. The Court was required to determine the scope and intention of the parties as expressed within the deed itself.

The Court analysed the language of the deed of settlement, applying principles of contractual interpretation. It considered whether the wording was sufficiently broad and unambiguous to encompass the claim for breach of fiduciary duty, or if the claim fell outside the intended scope of the release. The Court emphasised that a deed of settlement, like any contract, must be interpreted according to the plain meaning of its words, read in the context of the entire document and the surrounding circumstances at the time of its execution. The Court found that the deed did not clearly and unequivocally release the claim for breach of fiduciary duty.

Consequently, the Court of Appeal allowed the appeal, finding that the claim for breach of fiduciary duty was not barred by the deed of settlement. The matter was remitted to the Supreme Court for further determination of that claim.