2 total
Settlement enforced against defendants despite discovery that their liability insurance policy was fraudulent.
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.
Summary judgment granted to vendor for aborted real estate sale; inability to secure financing is not frustration.
The plaintiff vendor brought a motion for summary judgment against the defendant purchaser for failing to close a real estate transaction.
The purchaser argued the contract was frustrated because she could not obtain financing due to a car accident and the alleged theft of her funds by a third party.
The court granted summary judgment, finding that the purchaser's inability to secure financing did not amount to frustration of contract and did not excuse the breach.
The court awarded the vendor damages for the difference in the resale price and carrying costs, less a deduction for unproven security costs.
