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Contracts - Settlement Releases (3). Alyange Holdings Inc. v. Dewdney Mountain Farms Ltd.
In Alyange Holdings Inc. v. Dewdney Mountain Farms Ltd. (Ont CA, 2025) the Ontario Court of Appeal dismissed an appeal, here brought against an order that required the defendants "to perform their obligations under the Settlement Agreement" emanating from a mortgage action:[22] The motion judge began her analysis by focusing on the Settlement Agreement. She observed that a settlement agreement is a contract that may be enforced by the court and there is a strong presumption in favour of the finality of settlements: Deschenes v. Lalonde, 2020 ONCA 304, 447 D.L.R. (4th) 132, at para. 27, leave to appeal refused, [2020] S.C.C.A. No. 244, affirming Mohammed v. York Fire and Casualty Insurance Co. (2006), 2006 CanLII 3954 (ON CA), 79 O.R. (3d) 354 (C.A.), at para. 34, leave to appeal refused, [2006] S.C.C.A. No. 269. As a contract, a settlement agreement may be rescinded for fraud, misrepresentation, duress, undue influence, unconscionability, or mistake: Deschenes, at para. 28. The motion judge found that none of those vitiating factors were present in the case before her.
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[30] In my view, this appeal can and should be resolved solely on the basis of the Settlement Agreement. Further, I see no basis for appellate intervention with the motion judge’s decision to enforce the Settlement Agreement.
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