The appellants appealed the dismissal of their motion to set aside a 2014 consent dismissal and underlying settlement of a personal injury action.
The settlement was negotiated by their former lawyer, who misappropriated the funds and failed to obtain court approval under Rule 7.08 for the injured plaintiff, who was a party under disability.
The Court of Appeal upheld the motion judge's decision, finding she correctly applied the Book factors.
The insurer had acted in good faith without knowledge of the disability, and the settlement itself was not unreasonable.
The court held that the lawyer's fraud did not impugn the reasonableness of the settlement from the perspective of the tort claim.
