Breach of a Human Rights Tribunal of Ontario (“HRTO”) Settlement

Topic: Civil Litigation June 6, 2016 by Chris Rutherford

Breach of a Human Rights Tribunal of Ontario (“HRTO”) Settlement

by Chris Rutherford

What happens after your hard-negotiated settlement breaks down with a party breaching the Minutes of Settlement?

This blog post briefly addresses the steps that can be taken to address an alleged breach of a settlement. This post does not address enforcement of an order.

Form 18 is the Form that must be used to commence an Application for Contravention of Settlement (the “Contravention Application”).

A Contravention Application may be brought by either party.

The Contravention Application must be made within six (6) months of the contravention, or last contravention if there has been a series of contraventions. You may request the HRTO for an extension of time to file but must meet the HRTO’s test to do so. This will require you to show that the delay was incurred in good faith, and that no substantial prejudice will result to any person affected by the delay. The Tribunal has stated, see Miller v. Prudential Lifestyles Real Estate, 2009 HRTO 1241 (CanLII) that to meet the test that delay was incurred in good faith you must show more than the mere absence of bad faith.

It is clear that every effort should be made to meet the limitation period to commence an Application for Contravention.

The responding party to a Contravention Application has fourteen days to respond.

The HRTO’s general procedure to deal with a Contravention Application after receipt of the responding materials is to schedule a teleconference for submissions to be made. In the event that evidence is required, the HRTO may convene a hearing.

The Tribunal generally adopts a plain-meaning approach in its review of the Minutes, treating the Minutes as a contract between the parties.  As an aside this approach is a timely reminder to the importance of always considering your language in Minutes of Settlement. Given that costs cannot be awarded in the HRTO dealing with a Contravention Application if the Minutes were not clear every effort should be made at the time of settlement to make sure that the language of the Minutes  explicitly reflects the parties intentions, for example with any deadlines and timelines therein being particularized.

If you require assistance in responding to a Contravention Application or bringing a Contravention Application, the lawyers in LMR’s Litigation Group can assist you.

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