Set Aside Minutes of Settlement

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Date Retrieved:	2024-10-31
CLNP Page ID:	93
Page Categories:	Ontario Small Claims Court, Small Claims Court Procedures
Citation:	Set Aside Minutes of Settlement, CLNP 93, <https://rvt.link/au>, retrieved on 2024-10-31
Editor:	MKent
Last Updated:	2024/02/14

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Anamguya v. Intercon Security, 2010 HRTO 2464 (CanLII)

[14] Decisions of the Ontario Court of Appeal since CUPE maintain the balance set out in the CUPE decision between the public interest in the finality of contracts between parties and fairness to the individual, by confirming that abuse of process should only be found in the clearest of cases. See, for example, Miguna v. Toronto Police Services Board, 2008 ONCA 799 (CanLII), Waterloo (City) v. Wolfraim, 2007 ONCA 732 (CanLII), and France v. Liang, 2007 ONCA 741 (CanLII). In Joshi v. Joshi, 2006 CanLII 4940 (ON C.A.), the Court of Appeal took into consideration the personal circumstances of an appellant who moved to set aside Minutes of Settlement where there were outstanding allegations by the appellant of failure to disclose and where the applicant was “unsophisticated, on a disability pension, and his English is very poor. Except on the case conference in this case, he always had a translator with him... He also deposed that he did not understand the minutes of settlement” (at para. 1).

Davis v. Cooper, 2010 ONSC 4230 (CanLII)

[10] There are several grounds on which a contract can be set aside including misrepresentation, fraud, duress, mistake of fact, lack of capacity, or unconscionability. The plaintiff does not allege misrepresentation. She makes a bald assertion that the settlement was marked by fraud and deception but it is not at all clear what that assertion is based on. The substance of her complaint seems to be based on allegations of duress, mistake of fact, and unconcionability. The plaintiff also asserts her lawyer did not explain the release to her.

[11] In deference to the long held principle of contract law that parties must be held to their bargains freely negotiated, the courts have developed strict rules to govern when exceptions can be allowed and a contract invalidated.

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[13] The Court of Appeal has spoken on this in a similar circumstance. In a case where, among other assertions, the respondent alleged his lawyer advised he would not continue representing the respondent if he did not accept the settlement, the court declined to set aside the settlement. The court held a settlement will not be set aside unless it is shown the other parties to the agreement had knowledge of the duress. The court also made a distinction between “stress” and “duress” saying that stress is not a ground to decline to enforce a contract. [Dos Santos v. Waite, 1995 CarswellOnt 3384 (Ont. Ct. Gen. Div.), at paras. 4 and 5; affirmed 1996 CarswellOnt 3554 (Ont. C.A.)]. Stress is a very common reaction during settlement negotiations which cannot alone be a sufficient basis to void an agreement.

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