On July 23, 2021, the Supreme Court of Canada released its decision in Corner Brook (City) v Bailey, 2021 SCC 29. The Court allowed the appeal and reinstated the stay of the third party claim.
Background
Bailey suffered injuries when she struck pedestrian worker, Temple, and Temple’s employer’s vehicle. Bailey sued Temple’s employer (the City of Corner Brook), for damages respecting her injuries and the property damage to her vehicle.
The City of Corner Brook settled Bailey’s claim for personal injuries and property damage for $7,500 in exchange for a full and final release. The release included standard boilerplate language, including that the City of Corner Brook was released from “…all demands and claims of any kind or nature whatsoever arising out of or relating to the accident which occurred on or about…”