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ARTICLE · 13 SEPTEMBER 2013

Supreme Court Of Canada Clarifies Pierringer Agreements

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Pierringer Agreements have been around in Canada for some time now. They were originally developed in the United States to deal with some of the obstacles to settlement that were commonly seen in multi-party litigation.

CanadaLitigation, Mediation & Arbitration
Peter Kryworuk
Peter Kryworuk
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Pierringer Agreements have been around in Canada for some time now.  They were originally developed in the United States to deal with some of the obstacles to settlement that were commonly seen in multi-party litigation.  Pierringer Agreements were designed to allow one or more defendants in a multi-party action to settle with the plaintiff and withdraw from the litigation leaving the remaining non-settling defendants responsible only for the loss they actually caused. 

The Supreme Court of Canada in Sable Offshore Energy Inc. vs. Ameron International Corp., 2013 SCC 37 (Released June 21, 2013) settled a longstanding issue as to whether a settling defendant is required to disclose the quantum of the settlement to a non-settling defendant.

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