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The court set aside prior implementation orders and voided a settlement agreement due to the applicants' fundamental breach in pursuing foreign criminal convictions.
The Respondents (Ebrahimi Parties) brought a motion under Rule 59.06 to set aside or vary three prior court orders related to the implementation of Minutes of Settlement, alleging fraud and newly discovered facts.
They also sought a declaration that the Minutes of Settlement were void.
The Applicants (PCCI) brought a cross-motion to enforce the Minutes of Settlement.
The court granted leave to admit new evidence (February 2024 Memo) and found that PCCI's actions in pursuing criminal charges and restitution in Iran, contrary to their obligations under the Minutes of Settlement, constituted a fundamental breach.
Consequently, the court set aside the relevant implementation orders and declared the Minutes of Settlement null and void, dismissing PCCI's enforcement motion.
The court also addressed costs, awarding partial indemnity costs to the Respondents.
Appeal dismissed; settlement agreement only required respondents to request, not guarantee, withdrawal of foreign criminal proceedings.
The appellants, suspected of defrauding the respondents of over US $71 million, entered into a settlement agreement requiring them to return assets in exchange for the respondents discontinuing various global civil proceedings.
The appellants brought a motion to compel the respondents to also withdraw Interpol Red Notices and discontinue criminal proceedings in Iran, or alternatively to set aside the settlement.
The motion judge dismissed the motion, finding the respondents only agreed to request the withdrawal of criminal proceedings, as they had no authority to unilaterally dismiss them.
The Court of Appeal upheld the motion judge's interpretation of the settlement agreement and dismissed the appeal.
