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Insurer-appointed defence counsel had authority to settle within policy limits despite the insured's objections.
The defendant brought a motion to set aside a consent judgment settling a claim by the plaintiff and his parents.
The defendant argued that the settlement was reached by his insurer's appointed defence counsel without his personal lawyer's involvement, exposing him to liability exceeding his insurance policy limits through surviving crossclaims.
The court dismissed the motion, finding that the defence counsel had authority under the Ontario Automobile Policy to settle the claim, the settlement was within the scope of that authority, and the defendant failed to meet the legal test to set aside the consent judgment.
The court held that it was not in the interests of justice to set aside the judgment.
