Victorian County Court Enforces Handwritten Mediation Settlement Between QBE and Claimant
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TL;DR
- Victorian County Court enforced a handwritten mediation settlement between QBE and a claimant.
- The agreement was found binding despite being labelled 'in-principle' and not formally signed.
- All essential settlement terms were present in the handwritten agreement.
- QBE is permitted to file further orders and pursue costs recovery.
Overview
On September 10, 2026, the Victorian County Court ruled that a handwritten mediation agreement signed between QBE Insurance and a claimant in a disability insurance dispute was enforceable, despite being labelled 'in-principle' and lacking a formal signed settlement deed. The court found that the agreement contained all the essential terms necessary to create a binding contract.
What Happened
In a disability insurance dispute, the claimant sued QBE in August 2024 over policy benefits and participated in court-ordered mediation in July 2025.
Both parties, represented by lawyers, signed a handwritten agreement settling all claims for $100,000, with dismissal to follow payment and further formal documentation to be executed.
A draft deed of settlement was sent by QBE, but due to the claimant's breakdown with his lawyers and lack of further instruction, the deed was never signed.
QBE later sought enforcement. The claimant argued the agreement was not binding because it was 'in-principle' and referenced further terms to be agreed.
The Victorian County Court ruled the essential terms were clear and nothing substantive was left unresolved. The agreement was deemed binding despite its 'in-principle' label and absence of a signed deed.
Context
The claimant and QBE participated in a court-ordered mediation following a disability insurance policy dispute. Handwritten agreements at the conclusion of mediation, sometimes labelled 'in-principle', are common in Australian practice. The legal test from Masters v Cameron helps determine whether such agreements are binding immediately or depend on subsequent formal documentation.
A similar approach was taken in the 2024 case of Kwu v State of New South Wales, emphasizing the importance of substantive agreement rather than formal signing alone.
Why It Matters
- The ruling clarifies the enforceability of handwritten mediation settlements, even if marked 'in-principle' and lacking signature of a formal deed.
- The case provides practical guidance to claims professionals dealing with mediation agreements in insurance disputes.
- It echoes recent Australian court trends on binding effect of settlement reached at mediation.
Sources
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QBE wins enforcement of handwritten mediation deal claimant tried to escape
insurancebusinessmag.com