Money Express POS Solutions Inc. made an offer to settle in its termination letter to Raheel Jiwan, which Jiwan then referred to in his pleadings in a wrongful dismissal suit. The employer moved to have references to the letter expunged, on the grounds they were protected by settlement privilege: Jiwan v Money Express POS Solutions Inc, 2012 ONSC 909.
Master Short of the Ontario Superior Court gives a useful review of the case law and the factors that will be considered in cases of this kind: (1) was the communication from the defendant? (yes, in this case); (2) was the plaintiff contemplating litigation? (yes, even though the offer to settle was in the same letter as the termination; neither came 'out of the blue' from the employee's perspective); (3) was the defendant offering a real compromise? (yes); (4) was the communication 'without prejudice'? (yes, it said so specifically); and (5) was the genuine purpose of the communication a settlement? (again, yes). The paragraph in the pleadings was therefore struck.
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