The plaintiff settled with only one of the two defendants in the action. The terms of settlement involved the settling defendant reversing its pleaded position, switching sides, and joining cause with the plaintiff. The plaintiff and the settling defendant failed to immediately disclose the settlement to the non-settling defendant. Certain aspects of the settlement were first disclosed three weeks after the agreement was reached. The non-settling defendant successfully brought a motion to permanently stay the action. Justice Myers reasoned that the Rules are clear with respect to a party switching sides from its pleaded position: such an agreement must be disclosed as soon as it is made. Prejudice to the non-settling defendant is not relevant. Failure to immediately disclose amounts to an abuse of process for which the only remedy is a stay of proceedings.
