Can a settlement be relied upon by parties who are not parties to the settlement?

British Columbia, Canada


The following excerpt is from Sang v. Yick Sun Enterprises Ltd., 2021 BCCRT 194 (CanLII):

23. This principle can apply to settlements. In Daum v. Borsuk, 2020 BCSC 2013, the plaintiff had previously settled a court case with a former business partner about ownership of real estate. Then, the plaintiff brought a new court case against several other parties. The court found that the new parties could rely on the prior settlement even though they were not parties to it because the plaintiff and his former business partner intended it to be a final settlement of all claims about the real estate.

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