[2026] VSC 23
General information, not legal advice.
Supreme Court of Victoria
2026-02-03
Delany J
Original judgment source is linked above.
PRACTICE AND PROCEDURE - Application for judgment for breach of settlement deed to resolve a proceeding - Court retains general power outside of Civil Procedure Act 2010 (Vic) ss 61-64 - Doug Pascoe Investments Pty Ltd v Urban Cube Pty Ltd (No 2) [2025] VSC 809 followed - Roberts v Gippsland Agricultural & Earth Moving Contracting Co Pty Ltd [1956] VLR 555, Seachange Management Pty Ltd v Pital Business Pty Ltd [2009] VSCA 139; , referred to.
PRACTICE AND PROCEDURE - Deed governed by laws of South Australia and Commonwealth - Whether asserted defects in execution of deed provide basis to refuse application for judgment - Whether evidence external to deed establishes intention to be bound - Law of Property Act 1936 (SA) s 41(4) - Ferngrove Pharmaceuticals Pty Ltd v Betterway Healthcare International Group Pty Ltd (2022) 140 SASR 358 applied - Application for judgment allowed.
PRACTICE AND PROCEDURE - Asserted defect in service of writ - Whether prescribed notice attached to writ - Notice and writ handed through window of motor vehicle - Meaning of 'attached' - Service and Execution of Process Act 1992 (Cth) s 16 - Curtis v Singtel Optus Pty Ltd [2014] FCAFC 144; (2014) 225 FCR 458, Bosaid v Andry [1963] VicRp 67; [1963] VR 465 followed - Notice 'attached'.
(a) an obligation to pay an agreed sum of $3,343,184.85 to the Plaintiffs by 30 September 2025 ("Settlement Sum") [clause 3.1];
(b) an acknowledgment that the payment obligation was joint and several [clause 3.2];
(c) an agreement that, in the event of default, the Plaintiffs were entitled to issue a written Notice of Default requiring the Defendants to remedy that default within 14 days [clause 6.1];
(d) in the event of a continuing default, an irrevocable and unconditional acknowledgment of the Plaintiffs' entitlement to judgment for the unpaid amount, plus interests and costs [clause 6.3]; and
(e) an agreement that, for the purpose of obtaining judgment, the Deed itself and an affidavit from the Plaintiffs' solicitors would constitute sufficient evidence of the Defendants' default [clause 6.4].
(a) the defendants signed the deed; and
(b) each of the plaintiffs, of whom there are 13 natural or corporate persons, signed the deed.
We appreciate that your clients are seeking some 'comfort' that payment will be made in accordance with the deed.
We have no reason to believe that the terms of the deed will not be fulfilled, but we will let you have some further details when we are able.
(a) the first and second plaintiffs, Andrew Aldridge and Amanda Aldridge;
(b) the third and fourth plaintiffs, Jason Aldridge and Helen Aldridge;
(c) the fifth plaintiff, Eleftherios Pechlivanidis;
(d) the sixth plaintiff, Jake Ferraro;
(e) the seventh plaintiff, Henry Barry James;
(f) the eighth plaintiff, Dang Nguyen;
(g) the ninth plaintiff, Tim Dunkley;
(h) the tenth plaintiff, Letizia Gentile;
(i) the eleventh and twelfth plaintiffs, Nguyen Trading Co 1 Pty Ltd and Thao Thi Mai Nguyen; or
(j) the thirteenth plaintiff, Matthew Simpson.
(a) order relief in favour of the plaintiffs in accordance with the October Summons; and
(b) refuse the relief sought by the defendants in the January Summons.
(a) affidavits of Paul Costi sworn on 13 January 2026 ('First Costi Affidavit') and 14 January 2026;
(b) an affidavit of service on the first defendant affirmed by a process server on 24 February 2025;
(c) an affidavit of service on the second and third defendants affirmed by a process on 8 January 2026; and
(d) written submissions dated 13 January 2026.
(a) The Court would ordinarily leave a party to proceed by separate bill if the agreement involved matters extraneous to the suit compromised. And it regarded an agreement as falling within this general category: > > > (i) if it dealt with property as to which no question was raised in the suit, or > > > > (ii) if it provided for things to be done which went beyond the ordinary range of what the Court would order in such a suit, or > > > > (iii) if its enforcement involved giving effect to equities of a different nature from those involved in the suit, or > > > > (iv) if there were parties to the agreement who were not parties to the suit. > > > > (b) On the other hand in cases not falling within this first general category the Court would ordinarily enforce the agreement in the suit compromised. In particular this was so if the agreement related solely to the conduct or prosecution of that suit, or to the staying or dismissal thereof, or to the granting of the whole or part of the relief claimed therein or to the doing of that which the suit was brought to enforce. > > > > (c) For the purpose of deciding which of these two general categories a case fell within, the Court did not look merely at the particular obligations sought to be enforced. It looked also at the obligations of the applicant, so far as justice required that the application should not be granted without ensuring that they too would be performed. But it would disregard altogether obligations already fully performed. It may be observed that in order to ensure the performance of obligations by the applicant the Court could make an order conditional upon such performance. > > > > (d) If there was a substantial question to be determined as to what were the terms of the agreement, or as to whether it was valid or specifically enforceable, as for example where a substantial case was put forward of material mistake or of other circumstances such as would afford a defence to a suit for specific performance, a party would ordinarily be left to proceed by separate bill so that the matters raised might be fully investigated. > > > > (e) The fact that the only outstanding obligation under the agreement of compromise was one for the payment of an ascertained sum of money did not preclude the Court from enforcing the agreement in the suit.[2]
Plaintiffs have not established that the Settlement Deed was properly executed
The Electronic Communications Act 2000 (SA) does not apply to requirements that a document be witnessed by a person other than the author (s 6(1)(a)(i) of the Electronic Communications Regulations 2017 (SA)).
Unlike a contract, execution of a Deed is an all-or-nothing act; there is no such thing as partial execution of a Deed.
Without power under the Electronics Communication Act, the common law position is that the signature be written on paper: Bendigo and Adelaide Bank Limited v Russo [2019] NSWSC 661 at [95]. This accords with the plain meaning of s 41 of the SA Act, which requires that a natural person must sign or make a mark "on the deed".
A copy of a signature affixed does not constitute an effective signature without evidence that the individual personally authenticated the signature: Bendigo and Adelaide Bank Ltd v DY Logistics Pty Ltd [2018] VSC 558 at [55]. No such evidence has been adduced by the Plaintiffs. Any evidence that was adduced might be challenged at a trial on the merits, a matter that cannot be resolved without the Plaintiffs having adduced such evidence.
All that has been provided by the Plaintiffs were the signature pages, without any evidence as to whether they were signed and witnessed as part of the entire Deed (First Scott Affidavit, pages 51 to 62). At least one of the signatures appears to have been electronically affixed, contrary to South Australian requirements.
The written submissions of the Plaintiffs do no more than describe this as a "remarkable" position because the Defendants did not provide a wet ink copy of the Deed either. If all parties did not validly execute the Deed that does not ratify the invalid execution.
These arguments are not recent inventions but have been raised by the Defendants throughout, and have never been answered with evidence by the Plaintiffs (see Second Scott Affidavit and Costi Affidavit). The Plaintiffs made this application on notice that the Defendants would raise that the Deed did not appear to have been properly executed, and yet chose not to adduce any evidence about the circumstances of its execution.
Whether there is otherwise evidence external to the Settlement Deed evincing an intention to be bound is a triable issue
- The Plaintiffs seek to rely upon s 41(4) of the Law of Property Act which states that notwithstanding any defect, the execution of a deed will be taken to be valid if it appears from evidence external to the deed that the party intended to be bound by it.
- This evidently requires "evidence external to the deed" to be assessed and weighed by the Court and findings of fact to be made as to whether that evidence establishes that the party did intend to be bound by it.
- The Plaintiffs have not adduced any evidence on this application as to how the Settlement Deed was executed by each Plaintiff and what other external evidence counts for or against an intention to be bound by the Deed at the time that the Deed was purportedly executed.
- The Statement of Claim that the Plaintiffs rely upon for judgment (First Scott Affidavit, pages 285 to 289) does not contain any pleadings in relation to:
32.1 the manner in which each Defendant executed the Settlement Deed;
32.2 whether any Defendant intended to be bound by the Settlement Deed, and what facts would establish this.
- These are matters which, respectfully, ought to be addressed in the context of full pleadings and discovery, and then subject to a trial on the merits.
(a) the deed was executed, signed and delivered by the solicitors for the parties by email without a 'wet ink' copy being requested, required or referred to;
(b) correspondence between the parties demonstrates the defendants treated the deed as binding until the default occurred. The plaintiffs have always treated the deed as binding, as confirmed in letters from Hunt & Hunt to CCK dated 31 October 2025 ('31 October Letter') and 12 November 2025;
(c) applying s 41(4) of the LPA, even if there was defective execution of the deed, evidence external to the deed establishes that the parties intended to be bound by it; and
(d) the absence of a counterparts clause does not undermine the validity of the deed.
E.2 The submission that natural persons are to sign in 'wet ink'
(1) The following rules govern the execution of a deed:
(a) a natural person executes a deed by signing, or making a mark, on the deed;
(1) If, under a law of this jurisdiction, the signature of a person is required, that requirement is taken to have been met in relation to an electronic communication if -
(a) a method is used to identify the person and to indicate the person's intention in respect of the information communicated; and
(b) the method used was either -
(i) as reliable as appropriate for the purpose for which the electronic communication was generated or communicated, in the light of all the circumstances, including any relevant agreement; or
(ii) proven in fact to have fulfilled the functions described in paragraph (a), by itself or together with further evidence; and
(c) the person to whom the signature is required to be given consents to that requirement being met by way of the use of the method mentioned in paragraph (a).
(1) Subject to this regulation, Part 2 Division 2 of the Act does not apply -
(a) to the following requirements or classes of requirements:
(i) a requirement under a law of this jurisdiction that a document be witnessed, attested, verified or authenticated under the signature of a person other than the author of the document;
(a) a deed may be signed electronically by a person bound by the deed (referred to in the Regulations as 'the author'); and
(b) if there is a requirement for the signing of a deed to be witnessed, reg 6(1)(a)(i) prohibits the witness' signature from being affixed electronically.
The writing could be in any language in handwriting or print. There was no requirement of signature nor that sealing had to be witnessed. Despite the fact that witnessing was not necessary, it became almost universal practice to witness the sealing of deeds.[9]
E.4 Electronic signatures of parties to the deed
It is true to say that at common law attestation was not necessary for the validity of a deed: see, eg, Keith v Pratt (1862) 10 WR 296 and Halsbury's Laws of England, 4th ed, vol 12, par 1331 at 524.[14]
Execution and attestation of deeds
...
(2) The execution of a deed must be attested -
(a) where the deed is executed by a natural person - by at least one witness who is not a party to the deed ...
E.6 Section 41(4) of the Law of Property Act 1936 (SA)
41 Execution and attestation of deeds
...
(4) Notwithstanding the defective execution of a deed by or on behalf of a party to the deed, the execution will be taken to be valid if it appears from evidence external to the deed that the party intended to be bound by it.
H Service and the conditional appearance entered by the defendants
16 Information to be provided
Service is effective only if copies of such notices as are prescribed are attached to the process, or the copy of the process, served.
(a) recitals F and G of the deed, which refer to the existence of the proceeding and the denial of the allegations in the proceeding;
(b) two letters were sent nearly one year before the challenge to service by the same solicitors currently acting on behalf of the defendant, namely:
(i) a letter dated 27 February 2025 from CCK, exhibited to the First Costi Affidavit, which:
- (A) at paragraph 20, referred to 'the effect of service of the legal process'; and
- (B) at paragraph 40, referred to 'the service of the writ constituting the Supreme Court process on Mr Cordaro'; and
(ii) a letter dated 28 March 2025 from CCK, also exhibited to the First Costi Affidavit, which referred to conduct 'following service of the writ'; and
(c) the 15 October Letter and the 3 November Letter, which contained a litany of objections to the plaintiffs' asserted entitlement to enter judgment, but made no mention of any issues concerning or relating to service of the writ.
6.3 If the Cordaro Parties fail to comply with the Notice of Default then the Cordaro Parties irrevocably and unconditionally consent to the entry of judgment against them in the Proceeding for:
6.3.1 the Settlement Sum (less any amount which may have been paid);
6.3.2 the Investors' reasonable costs of and associated with the application for and entry of judgment; and
6.3.3 interest on the unpaid amount of the Settlement Sum from the date of default at the rate specified under section 2 of the Penalty Interest Rate Act 1983 (Vic).
(a) my chambers; and
(b) the solicitors for the defendants.
[2] Doug Pascoe Investments Pty Ltd v Urban Cube Pty Ltd (No 2) [2025] VSC 809, [93] (citations omitted).
[4] Investmentsource Corporation Pty Ltd v Knox Street Apartments Pty Ltd (2002) 56 NSWLR 27; [2002] NSWSC 710, [27] (Barrett J).
[5] Investmentsource Corporation Pty Ltd v Knox Street Apartments Pty Ltd (2002) 56 NSWLR 27; [2002] NSWSC 710, [27] (Barrett J) citing Sindel v Georgiou (1984) 154 CLR 661, 667 (Mason, Murphy, Wilson, Brennan and Dawson JJ).
[7] Bendigo and Adelaide Bank Ltd v Russo [2019] NSWSC 661, [95].
[8] Nicholas Seddon, Seddon on Deeds (Federation Press, 2nd ed, 2022).
[9] Nicholas Seddon, Seddon on Deeds (Federation Press, 2022) 51 (citations omitted).
[11] Bendigo and Adelaide Bank Ltd v DY Logistics Pty Ltd [2018] VSC 558, 54.
[13] Mostyn v Mostyn (1989) 16 NSWLR 635, 638-9.
[14] Mostyn v Mostyn (1989) 16 NSWLR 635, 638.
[16] Ferngrove Pharmaceuticals Pty Ltd v Betterway Healthcare International Group Pty Ltd (2022) 140 SASR 358; [2022] SASCA 31, [59]-[60] (Kourakis CJ, Doyle and Bleby JJA) (citations omitted).
[17] [1956] VLR 555, 564 (Smith J).
[19] Seachange Management Pty Ltd v Pital Business Pty Ltd (2009) 23 VR 396; [2009] VSCA 139, [40] (Maxwell P and Nettle JA) citing Roberts v Gippsland Agricultural & Earth Moving Contracting Co Pty Ltd [1956] VLR 555, 564 (Smith J).
[20] Seachange Management Pty Ltd v Pital Business Pty Ltd (2009) 23 VR 396; [2009] VSCA 139, [40] (Maxwell P and Nettle JA).
[22] Re RM Road Services Pty Ltd (in liq) (No 2) [2025] VSC 382, [39].
[23] Doug Pascoe Investments Pty Ltd v Urban Cube Pty Ltd (No 2) [2025] VSC 809, [93] citing Re RM Road Services Pty Ltd (in liq) (No 2) [2025] VSC 382, [39]-[44] (Matthews J).
[24] See, eg, Roberts v Gippsland Agricultural & Earth Moving Contracting Co Pty Ltd [1956] VLR 555; Re RM Road Services Pty Ltd (in liq) (No 2) [2025] VSC 382; Doug Pascoe Investments Pty Ltd v Urban Cube Pty Ltd (No 2) [2025] VSC 809.
[26] MNM Developments Pty Ltd v Gerrard [2005] 2 Qd R 515; [2005] QCA 230, [16] (de Jersey CJ).
[28] Curtis v Singtel Optus Pty Ltd (2014) 225 FCR 458; [2014] FCAFC 144, [47]-[51] (Mansfield, Gleeson and Beach JJ).
[29] Curtis v Singtel Optus Pty Ltd (2014) 225 FCR 458; [2014] FCAFC 144, [50] (Mansfield, Gleeson and Beach JJ).
[31] Bosaid v Andry [1963] VicRp 67; [1963] VR 465, 473.
[32] Bosaid v Andry [1963] VicRp 67; [1963] VR 465, 472-3.
Aldridge
Cordaro [2026] VSC 23
(2009) 23 VR 396
(2022) 140 SASR 358
(2014) 225 FCR 458
(2002) 56 NSWLR 27
(1984) 154 CLR 661
(1989) 16 NSWLR 635