M THYNNE EL MACARTNEYMEMBER OF THE KENNEDY STRANG LEGAL GROUP

20 May 2013

Without prejudice save as to costs

Partner & Writer:

Direct Line:

Email:

Our Ref:

Peter Archos

07 3231 8822parchos@thymac,com.au

PAA:1 30003

Allens Linklaters

Riverside Centre

123 Eagle Street

BRISBANE QLD 4OOO

Email: Bill.McCredie@allens,com.au

Dear Colleagues

Land Court of Queensland proceeding: Allan & Ors -v- Fraser Coast Regional Council

We refer to the offer contained in your letter of I May 2013, which offer, after its extension, lapsed at

5:00pm on 17 May 2013,

We will not, in this correspondence, address the asserlion contained in your letter concerning our

clients' claim for disturbance, Both of the parties have made their respective positions in this regard

abundantly clear,

Our clients are prepared to settle their claim in this matter on the following basis:

1, Your client agrees to pay $500,000 (less the advance against compensation of $338,913 which

has already -been

paid) to our clients in full and final settlement of the proceedings, The

payment would be made on the basis that:

(a) Our clients discontinue the proceedings in the Land Court within two days of execution

of a settlement agreement between the parties'

(b) Your client pay the balance of $161,087 to our clients within 14days of our clients'

discontinuing the proceedings, and

(c) Each party bear its own costs in the proceedings.

2. On the basis that our clients agree to settle the proceedings in accordance with the terms set

out above then your client is to:

(a) Pay a further sum to our clients of $500,000 (the further sum) paid on the following

basis:

This communication is confidential and may be privileged, Privilege is nol waived if this communication is misdirected or distributed,

lf received in enor, please contacl us and destroy all copies,

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ALLIANCE/o OF IAW FIRMI

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Allens Linklaters 21l'lay 2013

(i) the further sum is to assist our clients in the removal of the dwelling house on

the property and the purchase of a new shed and ancillary works, The

payment of the further sum is not conditional upon our clients actually

expending the sum of $500,000 in this regard; and

your client may construct a fence along or near the boundary between the

retained land the resumed land, at its own cost.

(ii)

3, The payment of the furlher sum will be conditional upon the matters set out below (to be

detailed in a settlement agreement), the material provisions of which will be as follows:

(a) Our clients' undertaking to remove the existing dwelling house on the property to a site

selected by our clients above R1,34, or alternatively demolishing the dwelling (with an

underlaking not to rebuild on the existing site), within an agreed timeframe,

(b) Until such time as your client is satisfied that the dwelling house has either been

demolished or removed to its new location in accordance with the preceding paragraph

your client is to pay our clients the further sum in increments for reimbursement of costs

related to demolition and removal upon the presentation of invoices, 0ur clients will

provide photographic evidence of removal or demolition of the dwelling house or, if that

is not sufficient, then an inspection can be undertaken by an independent building

inspector (agreed to by our clients, nominated in the settlement agreement), Within 14

days of your client being satisfied, acting reasonably, that the dwelling house has been

removed to its new location in accordance with the preceding paragraph or has been

demolished, the further sum, or so much thereof which has not then been paid to our

clients, will be paid to our clients.

(c) The settlement agreement should, in our view, contain a dispute resolution provision,

Obviously, the parties will have an ongoing relationship pending final resolution of all

matters and it would be inconvenient to have to return to the Court for assistance in the

event of any disagreement between the parties, We would propose that the settlement

agreement simply contain a provision that in the event there is a dispute between them

as to any factual circumstance relating to the subject matter of the settlement

agreement, then that dispute will be referred to an engineer whose business premises

are in the general locality of the property, ln the event the parties cannot agree on the

engineer to be appointed to resolve their dispute, then the appointment could be made

by the President of the Queensland Law Society lncorporated'

(d) Our client does not propose to give your client access across their propefty for the

purpose of construction of the boundary fence, We understand, in this regard, that your

client has adequate means of access to the boundary between the retained land and

the land which has been resumed,

(e) Each party is to bear its own costs of a settlement agreement to give effect to the

above, We propose that your office prepare the first draft of the agreement,

The offer contained in this letter remains open for acceptance until 5:00pm on Wednesday,22\/ray

2013.

Our clients have specifically instructed us to confirm that it is their sincere desire to bring about a

settlement of this matter if that is possible. This is particularly the case given the extremely long history

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Allens Linklaters 20 May 2013

of this matter and the earlier endeavours of the parties to reach some form of mutual accommodation

including the following :

. The August 2003 Deed and its negotiation

o Mediation offered 31 October 2003

Letter Fraser Coast Council to the Allans 26 November 2003 Rejecting Mediation of terms of

the Deed

GHD report 2009

Letter Peter Allen DSR to Tim Waldron 14 May 2009

Letter Peter Allen DSR to David Wiskar 14 May 2009

Letter Deacons to Allens Arlhur Robinson 1 December 2009 requesting relocation

GHD Report 2011

0ur letter to your firm dated 2}July 2012.

Yours faithfully

Peter ArchosPartner

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