Fraud: Can It Ever Really Be Settled?

Answering this question exposes the tension between the principle that "fraud unravels all" and the strong public policy (and private interest) in the finality of settlement agreements. A series of cases have grappled with these competing considerations with varying outcomes. The balance struck by the Courts on this important issue will be of central interest for any party to proceedings involving allegations of fraud.

The picture is complex and is made all the more so by the different approaches that claimants have taken to undermine settlements. Broadly these might be categorized as: (i) arguments about setting aside the agreement on the basis that it was fraudulently induced; and (ii) arguments about the proper construction of the settlement agreement and specifically that the releases in the agreement do not extend to the claim subsequently being brought.