The plaintiffs moved to enforce a $600,000 settlement reached at mediation for injuries sustained when the plaintiff was struck by a construction fence.
The defendants opposed enforcement, arguing the settlement was vitiated by fraud because the insurance agent who authorized the settlement had issued a fake policy, leaving the defendants uninsured.
The court granted the motion, finding that defence counsel had apparent authority to bind the defendants and that the alleged fraud by a third party did not invalidate the agreement.
The court held it would be unjust to shift the burden of the insurance fraud onto the innocent plaintiff, and the defendants must pursue their remedies against the insurance intermediaries.