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ARTICLE · 18 OCTOBER 2022

ONCA: "Immediate" Obligation To Disclose Settlement Agreements "Means Exactly What It Says"

In its recent decision in Hamilton-Wentworth District School Board v. Zizek, the ONCA reiterated that parties who enter into a settlement agreement which alters the litigation landscape have an obligation to immediately disclose the agreement.

CanadaLitigation, Mediation & Arbitration

In its recent decision in Hamilton-Wentworth District School Board v. Zizek1, the Court of Appeal for Ontario (the "ONCA") reiterated that parties who enter into a settlement agreement which alters the litigation landscape have an obligation to immediately disclose the agreement. Applying the principles set out in its 2010 decision Aecon Buildings v. Stephenson Engineering Limited2, the ONCA confirmed that the obligation to disclose such settlements is not a matter of discretion, context, or factual analysis. The decision enforces the clear "bright line" principle of immediate disclosure, barring which consequences of the "most serious nature" for the defaulting party must result – a stay of the action.

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