Compromise

Heaton and others v Axa Equity and Law Life Assurance Society Plc and another (H of L TLR 15 May: [2002] 2 All ER 96l)

Where a claimant has linked claims for successive breaches of separate contracts against two defendants and concludes a compromise agreement with one of them in full and final settlement of all claims or potential claims between them, the proper approach to the question whether he could pursue an action against the other defendant was to ascertain the intended effect of the compromise agreement, by interpreting the words used in the particular context; and, where that agreement had not fixed the full measure of the claimant’s loss, his action against the other defendant would not be precluded.