The usual expectation when parties enter into a settlement
agreement is that it will resolve disputes between them rather than
trigger them. However, there have been a number of cases
where this has not happened. Most recently, Interserve
Industrial Services Limited v ZRE Katowice [2012] EWHC 3205
(TCC).
Interserve and ZRE entered into subcontracts for scaffolding and
insulation at a power station in Pembrokeshire.
The subcontract contained dispute resolution provisions which
provided that final settlement of disputes was to be by
Arbitration.
Disputes arose regarding Interserve's entitlement to interim
payments. These were resolved and documented in a Settlement
Agreement. It set out provisions for payment of the
"Outstanding Sum" on achievement of milestones. It
confirmed that any other amounts becoming due would be
dealt with in accordance with the subcontract. The Agreement
was said to be governed by the laws of England and Wales and the
courts of
