If you agree to settle everything, then that means everything

September 23, 2015

in Litigation & Dispute Resolution

iStock_000018766927SmallDisputes are often resolved by way of settlement agreements entered into between the parties.

On occasion, one of the parties try’s to claim that the settlement agreement did not cover all matters or try to renegotiate the terms of the settlement agreement.

The High Court has recently applied some common sense and logic to the question of whether or not the parties are able to reach an understanding that resolves all issues between the parties.

In the case in question, the correspondence from one party (party A) recorded that the settlement was to be for “all outstanding matters”. The other party (party B) responded by letter, simply saying “the offer is accepted”.

Subsequently, Party B tried to claim that there were some issues that were not covered by the settlement agreement. The Court found that the plain understanding of the wording of the document was that there were to be no issues left unresolved between the parties and that the terms of the settlement were in full and final settlement.

If you are reaching settlement on terms with another party and the settlement document is drawn in such a way that it refers to this being a settlement of all matters, it is important that all issues are addressed or the settlement document should specifically address whether it is intended to be a final settlement of all issues.

Farry & Co. has a great deal of experience in providing strategic advice on all areas of dispute resolution.

If you require any advice or further information on the matters dealt with in this publication please contact the lawyer at Farry and Co. who normally advises you, or alternatively contact:

Paul Farry
09 379 0055 or 03 477 8870


The information contained in this publication is intended as a guide only. It does not constitute legal advice and should not be relied upon as such. Professional advice should be sought before applying any of the information to particular circumstances. While every reasonable care has been taken in the preparation of this publication, Farry and Co. does not accept liability for any errors it may contain.

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