CIVIL PROCEDURE - Judgments and orders - Enforcement

Law360 Canada ( August 18, 2023, 6:17 AM EDT) -- Appeal by defendants from order granting plaintiffs’ motion to enforce settlement pursuant to r. 49.09 of MB, Court of King’s Bench Rules. The motion judge concluded that the settlement agreement (settlement) bound both the corporate defendant, Wagner Construction & Cement Accent Inc. (Wagner Construction), and the individual defendant, Patrick Wagner (Wagner), to the payment of the settlement funds and granted an order to that effect. The defendants countered that the payment obligation rested solely with Wagner Construction. They submitted that the motion judge erred in determining the terms of the settlement reached by the parties. This matter arose from Cement Accents Manitoba Inc.’s (plaintiffs) action claiming breaches of a distributorship agreement between the plaintiffs and Wagner Construction. The plaintiffs also sought damages against Wagner personally for negligent misrepresentation. Wagner was the principal and directing mind of Wagner Construction. Examinations for discovery were scheduled and settlement discussions took place. The initial email contemplated a $120,000 settlement and indicated that, on payment default, the plaintiffs would have a consent judgment for $120,000 against Wagner Construction and have the right to pursue their action against Wagner. The plaintiffs filed a motion for enforcement of the settlement seeking judgment in the amount of $120,000 against both defendants pursuant to r. 49.09. The plaintiffs argued that the settlement obligated both Wagner Construction and Wagner to pay $120,000 and, since the defendants failed to comply, they were entitled to judgment against both. In their statement of defence, the defendants denied any breach of the distributorship agreement and asserted that Wagner acted only in his capacity as a director and that there was no basis for his personal liability....
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