The defendants brought a motion to enforce a Rule 49 settlement agreement concerning a motion for particulars and to set aside their noting in default.
The core dispute revolved around the interpretation of the phrase "we will comply with the Rules" regarding the delivery of the statement of defence.
The court found that the plaintiff's understanding (delivery within 20 days under Rule 18) was objectively reasonable, while the defendants' undisclosed intention to bring a motion to strike, which would defer defence delivery, was not within the plaintiff's reasonable contemplation.
Consequently, the court determined that the plaintiff had accepted the defendants' repudiation of the settlement, meaning there was no settlement agreement to enforce.
However, the court exercised its discretion to set aside the noting in default, finding that the defendants had consistently demonstrated an intent to defend and moved promptly.
The motion to enforce the settlement was dismissed, but the noting in default was set aside, with specific terms imposed for future procedural steps.
No costs were awarded due to divided success and tactical conduct by both parties.