Pierringer Agreement Disclosure

The purpose of the agreement is to enable the defendants who are parties to the Pierringer Agreement (the “Settling Of Accounts Defendants”) to settle the claimant`s claims against them and to withdraw from the dispute. In an action with multiple defendants, some may be willing to settle the claimant`s claims, others may not. Pierringer`s agreements allow defendants to be removed from the lawsuit, while non-sedentary defendants are brought to justice. The Handley Court of Appeal held (para. 39) “The disclosure obligation applies to any agreement between or between the parties to a dispute that has the effect of transforming the parties` contradictory position as set out in their pleadings into a cooperative position”. To preserve fairness, a court must “know the reality of adversity between the parties” and whether an agreement “alters the dynamics of the dispute” or “the contradictory direction” (cited moore v. Bertuzzi, 2012 ONSC 3248, at para. 75-79). . .

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