The plaintiff sued the defendants for unpaid invoices and a promissory note.
The parties reached a settlement agreement, but the defendants failed to comply with its terms.
The plaintiff then obtained default judgment in the action, which was later set aside because a waiver of defence was still in place.
The plaintiff subsequently sought to enforce the settlement agreement.
The Court of Appeal held that by electing to pursue default judgment, the plaintiff made a binding election at common law to treat the settlement agreement as repudiated and to proceed with the litigation.
Consequently, the plaintiff was precluded from later seeking to enforce the settlement.