In Baker Law Firm v Colors Unlimited Inc., 2024 ABKB 53, Zul Verjee, K.C. and Nicholas Austin were successful in resisting the plaintiff’s application to compel disclosure of a settlement agreement, a solicitor’s file, and other privileged materials from the various defendants, and other non-party respondents. Our firm acted for a lawyer and law firm who had been named as defendants. Applications Judge Prowse had previously denied the plaintiff’s application, which was then appealed to be heard before the Honourable Justice Labrenz (the instant decision).
In denying the plaintiff’s appeal, Justice Labrenz provides a detailed overview of the law of settlement privilege, and the circumstances in which it may be breached.
Further, Justice Labrenz confirmed that mere allegations or suspicions of fraud are not sufficient to void privilege by way of the so called “fraud exception”.
The decision is a useful primer in relation to exceptions to the law of privilege (particularly settlement privilege), and when these exceptions do or do not apply.
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