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ARTICLE · 17 NOVEMBER 2008

Proportionate Liability: Claims For Contribution When Principal Claim Settled

Moray & Agnew
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Separate Parts of the Wrongs Act 1958 (Vic) set out provisions allowing for defendants to claim contribution from each other (Part IV) and requiring liability to be apportioned in certain claims (Part IVAA).

AustraliaReal Estate and Construction
Cameron Forster
Cameron Forster
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Godfrey Spowers (Victoria) Pty Limited v Lincolne Scott Australia Pty Limited [2008] VSCA 208

Introduction

Separate Parts of the Wrongs Act 1958 (Vic) set out provisions allowing for defendants to claim contribution from each other (Part IV) and requiring liability to be apportioned in certain claims (Part IVAA).

The interplay between these two Parts in the context of a settlement has been dealt with in a recent Victorian Supreme Court (Court of Appeal) decision. The Court examined the following question: Where it is contended that a claim is apportionable under Part IVAA, and a defending party pays the claimant money to settle that claim prior to judgment, can the defending party pursue a claim for contribution against another defending party in respect of the apportionable claim, in order to recoup the settlement money?

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