CITATION: Wilson v. Northwest Value Partners In., 2015 ONSC 4726
‘COURT FILE NO. CV-14-503488
DATE: 20150723
‘ONTARIO
SUPERIOR COURT OF JUSTICE,
BETWEEN: )
[RIAN WILSON JefTC. Hopkins, for the Plsititt
Plaintitt
and
NORTHWEST INTERNATIONAL
HEALTHCARE PROPERTIES REAL
ESTATE INVESTMENT TRUST
d
)
)
)
)
NORTHWEST VALUE PARTNERS INC. and} Jonathan D. Cocker, forthe Defendants
)
)
)
Defendants)
)
)
HEARD: July 15,2015
D.FAIETA,I
REASONS FOR JUDGMENT
INTRODUCTION
[1] __ The plaintiff Brian Wilson commenced this action for payment of benefits following the
termination of his employment in December 2013 as a senior executive with the defendants
Northwest Value Partners Ine. (“Northwest Value”) and Northwest International Healthcare
Properties Real Estate Investment Trust (“Northwest REIT”) collectively referred to as
Northvves.
[2] A mediation was held on the morning of January 26, 2015. Wilson and his counsel,
‘Norman Grosman, were in attendance along with Benard Crotty, Vice-President of Northwest
‘Value and Northwest's counsel, Jonathan Cocker, At the mediation the parties agreed to setle
this action,
[3] On January 28, 2015 Bernard Crotty learned that Wilson was working with Mohawk
“Medical General Parner (0) Corp. Northwest and Mohawk are competitors in the healthcare real
‘estate field,Page: 2
[4] Byeemai dated February 18, 2015 counsel for Northwest advised:
Tan advise that our clients are not prepared to accept the tems ofthe proposed
setlement in light of the information we have learned regarding the activities of
Mt. Wilson, which our clients view as both inconsistent with his ongoing
obligations owed to thems and material t the tens of any fina resolution of all
utters beeen the pate.
As such, we will be reluming the Release executed by Mr, Wilson and we
propose thatthe parties proceed to discoveries.
[5] On June 17, 2015 Northwest commenced an action against Wilson and Mohawk for
damages arising from the alleged breach of his non-compettion agreement with Northwest,
[6] Wilson brings this motion for judgment in accordance with the settlement agreement,
‘Wilson fle his affidavit in support of this motion.
[7 By eross-motion Northwest asks this Court for an onder: (1) declaring that the parties
have not reached a settlement; or in the alternative, an order that the enforceability of the
settlement agreement is to be determined at tral; (2) thatthe Wilson action and the Northwest
action be consolidated or heard atthe sane time. In support of its motion, Northwest did not
submit the evidence of anyone Who attended the mediation on its behalf, Instead, it relied upon
the affidavit of Teresa Neto, the former Chief Financial Officer of Northvest REIT.
[8] The central issue in respect of both motions is whether the partes reached a settlement on
January 26, 2015,
[9] Northwest submits
(1) The parties did not execute documents relating to the settlement agreement
[Negotiations were at all material times subject to formalization in documents and
this was never completed. At no time did Northwest execute settlement
documents
@) Settlement negotiations did not reach consensus ut idem because Wilson did not
disclose a fundamental, material fact, namely that he was employed by a direct
‘competitor, Northwest could not, and did not, agiee to a full and final settlement
thou Knowledge of this fet
G) nm the altemative, setlement negotiations did not reach consensus ad idem
because Northwest negotiated under a unilateral mistake of fact, namely, that
Wilson was not employed by a direct competitor and in his of his contractual and
fiduciary duties.
[10] Accordingly, these motions raise the following issues:
(1) Did the partes age to sete this action?Page:3
@) Ifs0, should the settlement agreement be enforced?
ANALYSIS
[11] Rule 49.09 ofthe Rules of Civil Procedure provides:
49.09 Where a party to an accepted offer to settle fails to comply with the terms
ofthe offer, the other party may,
(@) make motion to a judge for judgment inthe terms ofthe accepted
offer, and the judge may grant judgment accordingly; or
() continue the proceeding as if there had been no accepted offer to
settle
[12] In Olivier’ v. Sherman, 2009 ONCA 772, at para, 24-28, and 34, the Ontario Court of
Appeal indicated that whether a settlement agreement should be enforced requires a two-step
analysis,
[13] The first step is to determine whether the parties agreed to settle the action. This