A release alone may not provide finality in multi-party litigation. In Pre-Con Builders Ltd v Neil Cooper Architect Inc, the Manitoba Court of Appeal confirmed that settling defendants may still face contribution claims, highlighting important considerations when structuring settlements.
When Settling Out Isn't Enough: Contribution Claims After Pre-Con Builders Ltd v Neil Cooper Architect Inc, 2026 MBCA 20
If you settle a client out of multi-party litigation with nothing more than a release, you may not have walked away at all.
That is the lesson from Pre-Con Builders Ltd v Neil Cooper Architect Inc, 2026 MBCA 20. The Court of Appeal restored a third-party claim that had been summarily dismissed below and in doing so reaffirmed three points: (1) the right to contribution under The Tortfeasors and Contributory Negligence Act (the "Act") is a statutory cause of action with its own rules; (2) a defendant need not raise every available defence to the main action before claiming over;
