The plaintiff brought a motion to strike several paragraphs of the defendant's Statement of Defence under Rule 25.11.
The impugned paragraphs referred to 'without prejudice' correspondence and settlement offers made by the defendant regarding the plaintiff's return to work following an alleged constructive dismissal.
The court found that the communications met the three-part test for settlement privilege, as litigation was on the horizon, the communications were intended not to be disclosed, and their purpose was to settle the dispute.
Consequently, the court struck the offending paragraphs, noting that pleading settlement-privileged communications is scandalous, frivolous, or vexatious.
