This is an appeal from a judgment rescinding a settlement agreement.
The respondent, Irene Deschenes, had settled a sexual assault claim against the Roman Catholic Episcopal Corporation of the Diocese of London in Ontario (the "Diocese") in 2000.
Subsequently, it was discovered that the Diocese had misrepresented its knowledge of the priest's prior abuse, as police statements from 1962 indicating earlier assaults came to light.
The motion judge rescinded the settlement based on innocent misrepresentation.
The appellants (Diocese and others) appealed, arguing the motion judge erred in applying the law of unilateral mistake, assessing materiality, and failing to uphold the finality of settlements.
The Court of Appeal dismissed the appeal, affirming that the settlement was properly rescinded for innocent misrepresentation, finding the misrepresentation material and relied upon, and that the interests of fairness and justice outweighed the principle of settlement finality in these circumstances.