Court of Appeal interprets settlement agreement as releasing party’s own affiliates, including former administrators and their solicitors

The Court of Appeal has held that a settlement agreement between a bank and a group of companies which included releases of the parties’ affiliates prevented the companies from later pursuing claims against their own affiliates. Those affiliates were held to include former administrators appointed by the bank and the administrators’ solicitors: Schofield v Smith [2022] … Read more

High Court finds settlement agreement released unknown fraud claims despite absence of express words covering fraud

The High Court has interpreted the contractual release in a settlement agreement as extending to unknown claims based on dishonesty and fraud, despite the terms of the release not expressly referring to such claims. The claimant was therefore precluded from pursuing further claims alleging deliberate wrongdoing following the receipt of what it said was new … Read more

High Court implies term into settlement agreement enabling claims against remaining parties to continue

In the context of claims relating to an allegedly fraudulent investment scheme, the High Court has held that a settlement agreement reached between the applicant liquidators and two of the respondents did not preclude the applicants from continuing their claims against the remaining respondents: Biscoe and Baxter as Joint Liquidators of Equitable Law Capital Limited … Read more

High Court agrees not to hand down judgment where settlement was reached after parties received draft judgment

In a recent decision, the High Court agreed not to hand down judgment where the parties had reached settlement following circulation of the draft judgment, and that settlement was conditional on the judge agreeing not to hand down judgment: Beriwala v Woodstone Properties (Birmingham) Ltd [2021] EWHC 609 (Ch). The decision helpfully summarises the court’s … Read more

Court of Appeal finds no binding settlement reached, emphasising importance of “subject to contract” label

In a recent decision, the Court of Appeal has overturned a deputy judge’s decision that a binding settlement agreement had been reached in inter-solicitor correspondence despite the use of the “subject to contract” label: Joanne Properties Ltd v Moneything Capital Ltd [2020] EWCA Civ 1541. The decision illustrates that, once parties have started to negotiate … Read more