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ARTICLE · 22 JUNE 2023

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Settlement Regret And Disputes: The Risks Of Settling Too Soon

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Settlements have many benefits. More cases settle than go to trial for many reasons. However, there are risks, including the risk that a dispute arises about the settlement...

CanadaLitigation, Mediation & Arbitration
Carolyn McKeen
Carolyn McKeen
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Settlements have many benefits. More cases settle than go to trial for many reasons. However, there are risks, including the risk that a dispute arises about the settlement or its implementation afterward. In such disputes, one side will typically argue that the settlement was different than how it has worked out, and the other side will argue that all is as intended, simply the consequences were not expected or negotiated as favourably as the parties later desire. This is demonstrated in the case of Petrochemical Commercial Company International Ltd v. Nexus Management Group SDN BHD, 2023 ONCA 308 (CanLII), in which a father and son likely came to realize at the end of an appeal that they should have confirmed that what they were asking for in the settlement was realistic and legally possible, especially since they were dealing with very complex international proceedings.

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