The appellant contractor appealed a summary judgment decision enforcing a stipulated remedy in a mediated settlement agreement.
The settlement required the appellant to remediate construction deficiencies by a deadline, failing which $30,000 held in court would be forfeited to the respondent.
The motion judge found the appellant failed to remediate the deficiencies and declined to grant relief from forfeiture.
The Divisional Court dismissed the appeal, finding no palpable and overriding error in the motion judge's characterization of the clause as a forfeiture rather than a penalty, nor in her conclusion that enforcing the forfeiture was not unconscionable.