The Corporation of the City of Kawartha Lakes moved to stay or dismiss the action against it, alleging abuse of process due to the plaintiffs' delayed disclosure of a cooperation agreement with co-defendants.
The plaintiffs concurrently moved for court approval of this agreement.
The court examined the disclosure obligations for partial settlement agreements that alter the litigation landscape.
It found that while immediate disclosure is generally required, the moving party had sufficient prior knowledge of the agreement's essential terms to avoid "litigation by ambush." Consequently, the motion to stay was dismissed, and the plaintiffs' motion to approve the cooperation agreement was granted.
A separate consent motion to dismiss the action against The Dominion of Canada General Insurance Company and John Doe was also granted.
