CHANCERY DIVISION
LEEDS DISTRICT REGISTRY
Oxford Row Leeds LS1 3BG |
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B e f o r e :
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SHARON LESLEY WALSH SCOTT SAMUEL WALSH |
Claimant/Additional Defendants |
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- and - |
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(1) HARVEY JOHN HALL JOANNE HILARY RAINES |
Defendants/Additional Claimants |
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Mr Greg Pipe (instructed by Clarion) for the Defendants
No attendance by Further Additional Defendants
Hearing date: 4 July 2016
Date draft circulated to the Parties 8 July 2016
Date handed down 17 August 2016
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Crown Copyright ©
Introduction
COMPROMISE AGREEMENT MADE ON AN OPEN BASIS DATED 18 MAY 2016
(1) The parties:a)"The First Parties" Harvey John Hall and Joanne Hilary Raines
b)" the Second Parties- Sharon Lesley Walsh, Scott Samuel Walsh and Kevin Samuel Walsh
(2) The Action - action numbers A30LS206 and 3LS30804 proceeding in the Leeds District Registry of the Chancery Division of the High Court of Justice.
A of the First Parties agreeing that:(1) each and every claim and cause of action pursued by each of them against each and all of the Second Parties in the Action, including but not limited to all claims for costs shall be dismissed; and,
(2) That they shall pay to the solicitors for the Second Parties the sum of £275,000 by 4pm 28 days after the consent order referred to below is served in an approved form by the Court on the solicitors for the First Parties;
B the Second Parties agree that;
(3) each and every claim and cause of action pursued by each of them in the Action, including but not limited to all claims for costs, against each of the First Parties shall be dismissed;
(4) None of the Second Parties have any right, claim or interest in or to any shares, monies or any other assets of any nature that are the subject of the action held by Redmayne (Nominees) Ltd and or Redmayne Bentley LLP and none of the Second Parties shall hereafter assert any right, claim or interest in the same; and
(1) prepare and present to the court for approval a consent order to effect the terms of this agreement.(2) not seek any legal costs against any other party in relation to the Action and the subject matter of the Action.
(3) execute such documents and or provide such assistance as may be reasonably required to satisfy Redmayne (Nominees) Ltd and Redmayne Bentley LLP as to the relinquishment of the Second Paries interest.
The Applications.
"Where proceedings are extant and the Claimant wishes to allege that an agreement has been reached compromising those proceedings, he may seek a determination of the point as a preliminary issue in those proceedings without the need for a fresh action. If the point is determined in his favour an order staying the proceedings will be made and a declaration given as to the terms of the compromise". (see Eden v Naish 1878 LR 7 Ch.D 781 and Metrostore Ltd v BRB unreported January 20 1989)
The Defendants' Arguments
" .. If the promised or actual forbearance to pursue a claim is construed as being in return for the promised (my emphasis) performance of some act by the other party, such agreement will be regarded as one involving the immediate discharge of the claim. Where, however, the promised or actual forbearance is construed as being in return for the actual (my emphasis) performance of some act by the other party, the claim forborne will not be discharged until such performance takes place. The propositions may be illustrated by reference to the examples:(a) A agreed not to pursue his claim against B in return for B's promise to pay A the sum of £10,000 within 28 days;
(b) A agreed not to pursue his claim against B if B pays to A sum of £10,000 within 28 days.
If B fails to make the payments within the period specified, A's remedy under (a) would merely be to sue B for damages upon the compromise. Under (b) he would have the option of accepting B's repudiation of the agreement, treating himself as discharged from further performance of his obligations and reasserting his original claim, or affirming the compromise and suing upon it.
The Claimants' Arguments
"When interpreting a written contract, the court is concerned to identify the intention of the parties by reference to "what a reasonable person having all the background knowledge which would have been available to the parties would have understood them to be using the language in the contract to mean", to quote Lord Hoffmann in Chartbrook Ltd v Persimmon Homes Ltd (2009) AC 1101 para 14. And it does so by focusing on the meaning of the relevant words in their documentary, factual and commercial context. That meaning has to be assessed in the light of (i) the natural and ordinary meaning of clause, (ii) any other provisions of the (document) (iii) the overall purpose of the clause and the (document), (iv) the facts and circumstances known or assumed by the parties at the time that the document was executed, and (v) commercial common sense, but (vi) disregarding subjective evidence of any party's intentions"
a. Commercial common sense should not be invoked to undervalue the importance of the language of the provision which is to be construed
b. The clearer the natural meaning the more difficult it is to justify a departure from that meaning.
c. Commercial common sense must not be invoked retrospectively. Common sense is only relevant to the extent of how matters would or could have been perceived by reasonable people in the position of the parties at the date the contract was made. The mere fact that a contractual arrangement if interpreted in accordance with its natural language has worked out badly, or even disastrously, for one of the parties is not a reason to depart from the natural meaning.
d. A court should be slow to reject the natural meaning of a contractual provision simply because it appears to be a very imprudent term for one of the parties to have agreed even ignoring the benefit of hindsight. Interpretation is to identify what the parties have agreed, not what the court thinks they should have agreed.
e. Only facts known to both parties or reasonably available to them both at the date of the contract can be taken into account as an aid to construction. It cannot be right to take into account a fact or circumstance known only to one of the parties
f. In situations where an event occurs which the parties clearly did not intend or contemplate judging from the language of the contract then the court should give effect to the intention that the parties would have intended if that is clear.
Conclusion
The Defendants' Application
The Claimants' Application
Proposed Order
HH Judge Saffman