At The Point Of Agreement: Validity Of Prior Settlements Where Capacity Is In Issue

The plaintiff sought to invalidate a settlement agreement and deed of settlement concerning allegations of sexual abuse, arguing he lacked capacity due to alcohol use disorder. The Court found the plaintiff was a 'person under disability' when instructing his solicitors on 16 July 2019 but not when signing the deed on 5 August 2019, ultimately ruling that the deed was enforceable.

In issue

• The central question before the Court was whether a previous settlement agreement (formalised by way of a prior deed of release) was valid, due to the plaintiff’s incapacity at the relevant time of agreement as a person under a disability.
• In determining this, the Court was required to consider whether the plaintiff was classified as a person under disability pursuant to rule 15.01 of the Supreme Court (General Civil Procedure) Rules 2015 (Vic) (the rules), and, if so, whether the agreement was invalid due to that disability and by virtue of the agreement being made absent court approval of the