CORRS

CHAMBERS

WESTGARTH

LAWYERS

.,.c· 19 August 2002 Pages:~ (including this page)

To:

To:

From:

Mr Ken Horsley Minter Ellison

Mr Phillip Wotton Wotton & Kearney, Solicitors

David Abernethy Email: David_Abernethy@corrs.com.au Our ref: DJA/BRIS2923-7545873

Facsimile: Telephone:

Facsimile: Telephone:

Facsimile: Telephone:

3119 1481

02 9236 9500

(07) 3228 9444 (07) 3228 9456

PLEASE NOTE: If this facsimile transmission is received by other than the named addressee, you are requested immediately to notify us and retum the original message to us at the postal address shown. The client entitled to the benefit of the solicitor/client/legal professional privilege attaching to this document is entitled to recover all copies of the document and to prevent its dissemination or use in any form by application to the courts. Privilege is not waived or lost by reason ofa mistaken delivery of the document to other than the addressee.

If this facsimile is illegible or incomplete please telephone (07) 3228 9310

Dear Ken/Phillip

BRISBANE GRAMMAR SCHOOL - CLAIM B1BQP ~~~~~~~~~-

I confirm that the Chairman of the Board of Trustees, Howard Stack, and I attended a settlement conference this morning with IBQP I his solicitor, David Frank and Counsel, Richard Morgan.

The meeting was on a without prejudice basis. I attach a Schedule of Damages claimed by Mr IBQP fogether with a print-out in relation to the expenses he claims he has incurred.

I said to David Frank and Richard Morgan that I considerlBQP lhas enonnous hurdles to overcome in relation to the limitation issue. However, we have not seen any material which he would rely upon in support of any application for extension of the period.

,__._.~~_,iew, very much in the interests of the School and underwriters to reach a settlement During the conference it became apparent that the following issues are relevant to

(i) he became a plaintiff himself because he was angered at the content of affidavits filed on behalf of the School in the interlocutory a plications in th< matters in which Max Howell and Brian Cannon disputedBQP recollection of the events leading up to the alleged meeting with Max Howell an w at was said in the meeting with Max Howell .

WATERFRONT PLACE 1 EAGLE STREET BRISBANE 4000

GPO BOX 9925 QLD 4001

TELEPHONE (07) 3228 9333 INT t-617 3228 9333 FAX (07) 3228 9444

DX 135 BRISBANE

SY ONEY MELllOURN E llRISBANE PERTH CANBERRA GOLD COAST

OUR LIABILITY IS LIMITED BY THE SOLICITORS SCHEME, APPROVED UNDER THE PROFESSIONAL STANDARDS ACT 1994 (NSW).

THIS LIMITATION OF LIABILITY APPLIES TO CLAIMS THE PROPER LAW OF WHICH IS THE LAW OF NEW SOUTH WALES,

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DOC.068.001.0151_R

CORRS

CHAMBERS

WESTGARTH

LAWYERS

19 August 2002 Page 3 Minter Ellison and Wotton & Kearney BRISBANE GRAMMAR SCHOOL - CLAIM BiBQP

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(ii) IBQP ries back to liid'f+tl'd this Thursday and is very keen to reach a settlement before he leaves. IBQP ~as personal privacy issues with regard to his own family.

(iii) IBQP!s very much preferred position would be to settle his claim, fly back to thel;Jil•f+DJ ~sday and never hear anything further in relation to the proceedings. We gather that

Shine Roche McGowan have been in touch with him on a regular basis.

While we cannot guarantee to!BOPlthat he will not be the subject of a subpoena in the future should any of these matters go 1o--tna:rievertheless I am strongly of the view that a settlement with him, including a confidentiality provision in relation to the terms of his own settlement will go a long way to keeping him on side with the School's interests as much as that is possible.

The impression of both myself and Howard Stack is that he has no desire to be involved in the Shine Roche McGowan actions in any way and the motivation for his taking legal advice in the action was a concern in res ect of his own privacy. We are concerned that if we do not reach some settlement/closure wit BQP before he returns to the then it may only serve to fuel animosity towards the c 100 whereas a settlement, a visit to the School together with a meeting with the current Headmaster (which he requested) may at least mean he will not go out of his way to assist the other claimants.

We appreciate that the issue of indemnity has not been resolved. While the trustees are extremely ~gitated b~ the proposal of ine:J a '.0/30 basis nevert~eless we c?nsider it i~ i~ everyone's mterests if we settle the BQP claim on that basis but without prejudice to the underwriter's/trustees' position on m emnity generally.

At the meeting with!BOPl and his lawyers this morning we did not descend to haggling over figures. Our view, ~' is that an offer should be made to settle on the following general terms:

1 payment of general damages in the sum of $12,500.00;

2 payment of expenses in the sum of $20,500.00 in respect of fees paid to the psychologist, air fares, accommodation and car hire in Brisbane;

3 legal costs of Baker Johnson and Counsel to be agreed or filing agreement to be assessed on a standard basis by Monsour Legal Costs;

4 the terms of the settlement be confidential pending a resolution of all other claims against the School;

5 the usual release.

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DOC.068.001.0152_R

CORRS

CHAMBERS

, WESTGARTH

LAWYERS

19 August 2002 Page 3 Minter Ellison and Wotton & Kearney BRISBANE GRAMMAR SCHOOL - CLAIM BY IBQP

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Would you please confirm as a matter of urgency whether or not you are prepared to join in a settlement of th9BQP !claim on the above basis and we will then draft a settlement agreement for your approval.

Yours faithfully

CORR/;~;:~~~S WESTGARTH

wuu;, ~ David Abernethy Partner

encl

B/578755/1

DOC.068.001.0153_R