The parties entered into Minutes of Settlement to resolve multi-jurisdictional family litigation by consolidating their dispute into an alternative dispute resolution process in Ontario.
The day after signing, the moving party was served with a new defamation proceeding commenced by the responding party in Iran.
The moving party sought to set aside the Minutes of Settlement, arguing the new proceeding was a fundamental breach.
The court found that the responding party's failure to disclose and withdraw the defamation claim constituted a fundamental breach of an implied term to end all related litigation.
The court allowed the motion, set aside the Minutes of Settlement, but declined to award damages or address jurisdiction.