ILETRAIT PTY LTD v McINNES [1997] NSWCA 158

ILETRAIT PTY LTD v McINNES SUPREME COURT OF NEW SOUTH WALES COMMON LAW DIVISION

PRIESTLEY, HANDLEY JJ and GROVE AJA 17 April 1997, 17 April 1997

CONTRACT — CONSTRUCTION OF TERMS OF SETTLEMENT respondents commence proceedings in District Court alleging breach of contractual obligation for particular periods within the three year period covered by the written agreement between the parties — proceedings in District Court settled — parties sign Terms of Settlement of District Court proceedings to which a Deed of Release is annexed — respondents subsequently bring further proceedings against appellants for breach of contractual obligations for the remainder of the three year period — appellants argue that Deed of Release released the appellant from all obligations under the contract — trial judge finds that on the proper construction of the Deed the appellants were only released from claims raised in original District Court proceedings — Held On appeal: the trial judge was correct in his construction of the Deed.

Grant v John Grant & Sons (1954) 91 CLR 112.

Priestley JA These proceedings arise from a business transaction between the appellants and the two respondents which was entered into between them in 1984. The transaction was documented and under it the appellants undertook obligations to the respondents.

In 1985 the respondents commenced two District Court proceedings against the appellants alleging breach of obligations under the documentation they had entered into. The District Court proceedings claimed moneys due to the respondents up to 31 August 1985. The appellants' obligations to the respondents pursuant to the transaction covered a period of three years extending into 1987. The District Court proceedings were compromised between the parties who signed terms of settlement in April 1987, some months before the three year period of the appellants' obligations to the respondents was to run out. At the time of the settlement the amount due by the appellants to the respondents, if the respondents succeeded in their claims in the District Court, was approximately $30,000. That sum included interest on the amount that had been claimed to be due as at the end of August 1985.