Estate Planning

Essential Terms of Settlement Offers

By Hull & Hull LLP

If an offer is negotiated and later accepted, how is a court to resolve a later dispute over the form of the release?  The Court in Glaspell v. Glaspell Estate, (2008) 36 E.T.R. (3d) 315 held that a release that does not commit a signatory to taking any steps other than those contemplated by the settlement agreement will suffice, even if overly wordy.  The parties had reached a settlement agreement: the evidence disclosed mutual intention to create a legally binding contract between the parties and an eventual agreement containing all of the essential terms agreed upon.    

Unfortunately, the settlement agreement did not specify the form of release.  When it came time to dismiss the action, the plaintiff refused the defendant's form of release.  So the defendant brought a motion to enforce the apparent settlement.  The judge allowed the motion and denied the plaintiff's cross-motion to amend the settlement terms, dismissing the action.  

An implied aspect of this decision is that mere form of release is not necessarily an essential or fundamental term of an agreement so long as the essential terms themselves are not altered.  The decision does not preclude the possibility in other situations though.

Enjoy your weekend.

Chris Graham

Full post as published by Toronto Estate Law Blog on March 14, 2008 (boomark / email).