Settlement Agreements: Excluding Liability For Defects

A judgment delivered on 23 April 2012 stated that in a Settlement Agreement, inclusion of the phrase "full and final settlement in respect of any and all outstanding matters" was, on the facts, sufficient to exclude liability for defects which were patent at the date of the Settlement Agreement.

Background

Point West, a developer and landlord, and Mivan, a building contractor, entered into a Settlement Agreement in October 2007.  The Settlement Agreement was in relation to the works carried out by Mivan on one of Point West's properties, under a contract entered into on 22 August 2000.

The Settlement Agreement was stated to be "regarding Mivan's Final Account in respect of all Works carried out and any corresponding outstanding matters.  The agreement comprises a further payment of £50,000 (including VAT), representing the final assessment of monies due or to become due thus achieving full and final settlement in respect of the above works, together with any