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Buyer’s Regret Is Not Grounds To Set Aside A Valid Agreement

William J. McNichol v. Cooperators General Insurance Company 2020 NBQB 188

The Plaintiff, Mr. McNichol was injured in a car accident. As a result of his injuries, he commenced an action against his own insurer, The Cooperators under the NBEF No. 44 – Family Protection Endorsement on his auto policy.

During the examination for discovery, settlement discussions between the two parties were successful. The Cooperators made a settlement offer of $25,000 in exchange for a Full and Final Release and a signed Consent Order for Discontinuance. This offer was accepted by the Plaintiff, and the cheque was sent along with the Full and Final Release and Consent Order for Discontinuance. All Mr. McNichol had to do was sign the paperwork.

At this time, Mr. McNichol changed his mind and decided he did not want to sign the Final Release and Consent Order for Discontinuance, as he believed that his case was worth much more than the $25,000 which he had originally agreed to.

The judge looked at this case and ruled that all of the prerequisites of a valid and binding settlement were met, and buyer’s regret is not grounds to set aside a valid agreement.

In accordance with rule 49.08(1) of the Rules of Court, the judge ruled it would be appropriate to award judgement on the terms of the settlement and not to dismiss Mr. McNichol’s claim outright. The judge ordered the Cooperators to pay Mr. McNichols the $25,000 previously agreed and barred Mr. McNichol from bringing any future claims against the Cooperators arising from the same facts.

You can read William J. McNichol v. Cooperators General Insurance Company 2020 NBQB 188 in its entirety here.

At Foster & Company, we represent institutions and individuals looking for help understanding insurance coverages and responding to claims. Contact us by phone at 506-462-4000 or reach us online for advice.

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