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General releases can cover unanticipated claims: Ontario Court of Appeal rules

Tuesday, May 16, 2017 @ 5:29 PM | By Cristin Schmitz

Underscoring the importance of finality and certainty in settlement agreements, the Ontario Court of Appeal has issued new guidance on how to determine whether general releases in settlements bar claims that were not anticipated at the time of settlement.

On May 15, the appeal court reversed Ontario’s Divisional Court, and the motions judge below, by ruling that a typical, broadly worded mutual release that was signed in 2008 to settle a $66,632 fee dispute between an accounting firm and its ex-client bars the ex-client’s subsequent $3...