Which Settlement Agreements Require Immediate Disclosure?

While litigants with potentially meritorious claims are rarely stopped in their tracks, the Ontario Court of Appeal has confirmed that this is precisely what will happen if a party fails to immediately disclose a critical settlement agreement.

In seven recent decisions, the Court of Appeal has reiterated that failure to comply strictly with this disclosure requirement is an abuse of process for which the only appropriate remedy is a stay of proceedings¹.

The question with which litigants continue to grapple is, which agreements require immediate disclosure? Although each case will depend on its facts, the recent case law provides guidance on the factors that courts will consider when assessing whether immediate disclosure is required. Settling parties should pay careful attention to this guidance to avoid the serious consequences that may otherwise ensue.