Agreement To Settlement Fails To Close Matter

Settlements are designed to bring finality to litigation, but without careful consideration, they can raise practical questions making resolution more difficult. In a recent decision from the Ontario Court of Appeal, the Court tackled the narrow but consequential issue of whether a plaintiff is entitled to post-judgment interest following a settlement agreement. The case offers a reminder that unless parties secure a formal court order or expressly incorporate interest provisions into their settlement, the statutory provisions of the Courts of Justice Act will not necessarily be engaged. This decision not only underscores the importance of precision in drafting settlement terms but also reinforces the limits of judicial intervention when disputes arise after the handshake.