The Court of Appeal for Ontario dismissed the appeal from a judgment enforcing a settlement agreement in the context of a pending arbitration.
The appellants failed to pay the agreed amount by the deadline, triggering a penalty clause.
The court found no error in the application judge’s decision to proceed by application rather than action, in the finding that the respondents had not breached their obligations of good faith, or in the enforcement of the penalty clause.
The appeal was dismissed and costs awarded to the respondents.
