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ARTICLE · 25 APRIL 2018

Settlement: Attention To Details

Rogers Partners LLP
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The case of Automodular Corporation v. General Motors of Canada Limited, 2018 ONSC 1640 is a good example of the need for parties and their lawyers to pay close attention to the details of a settlement.

CanadaLitigation, Mediation & Arbitration
Brian Sunohara
Brian Sunohara
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The case of Automodular Corporation v. General Motors of Canada Limited, 2018 ONSC 1640 is a good example of the need for parties and their lawyers to pay close attention to the details of a settlement.

General Motors Canada was sued by an assembly company for breach of contract and unjust enrichment. Shortly prior to trial, a settlement agreement was reached wherein the defendant agreed to pay the plaintiff $7 million, inclusive of interest and costs.

Approximately 10 days after the settlement agreement was reached, the plaintiff's lawyer indicated that HST needed to be added to the settlement amount. Due to the high quantum of the settlement, the HST was substantial: $910,000.

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