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ARTICLE · 05 JULY 2016

Anshun Estoppel – the risks of waiting, 25 years on

An Anshun estoppel can prevent a party from making claims which should have been pursued in earlier proceedings.

AustraliaLitigation, Mediation & Arbitration
Tim Lethbridge (Previously With Kott Gunning)
Tim Lethbridge (Previously With Kott Gunning)
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You have bought defective goods from a supplier, which has caused damage to your property. You refuse to pay for those goods, so the supplier sues you. You defend the claim on the basis that the supplier has given you defective goods, but decide against pursuing your claim for damages – you want to see how this claim plays out before incurring the substantial costs of pursuing your own.

You reach a settlement with the supplier, which makes no reference to any claim for damages you might have, and then commence your own claim against the supplier. But is it too late? Have you lost the opportunity to pursue your claim?

The principles known as "Anshun estoppel" may be a quarter of a century old, having been laid down by the High Court in Port of Melbourne Authority v Anshun Pty Ltd [1981] HCA 45, but they retain critical importance. In essence, an Anshun estoppel can prevent a party from making claims which should have been pursued in earlier proceedings.

The test

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