Apportionable Claims And Terms Of Settlement – Are Terms Of Settlement Discoverable?

McAskell & Anor v Cavendish Properties Limited & Ors [2008] VSC 328

Introduction

The Supreme Court of Victoria has dismissed an application by one party to proceedings to have access to terms of settlement agreed between other parties to the same claim.

The plaintiffs sued a number of parties in relation to losses suffered in relation to a property. The plaintiffs settled with some defendants, and apparently obtained partial damages, but maintained the claim against other defendants, the builders.

The builders sought discovery of the terms of settlement between the plaintiffs' and the other defendants. Whilst the terms were confidential, the builders argued that as the plaintiffs' claim was an apportionable claim, they as remaining defendants should be entitled to know the amount already recovered by the plaintiffs.