Background:
Diamant Cleaning Vancouver Inc. (plaintiff) entered into a cleaning contract with Kindred Construction Ltd. (defendant). A dispute arose regarding the contract amount, leading the plaintiff to file a builder’s lien. Kindred paid funds into court to remove the lien. A prior summary trial dismissed the plaintiff’s claim, awarding costs to Kindred. The plaintiff appealed but later settled, withdrawing the appeal in exchange for a waiver of Kindred’s costs and a $1 payment.

Legal Issues & Arguments:

• The plaintiff claimed Kindred misrepresented the governing contract and sought to set aside the settlement agreement.

• The plaintiff alleged collusion between her lawyer, Ouran Li (third party), and Kindred in drafting the release. The court rejected this claim, finding it a standard legal practice.

• Kindred argued the settlement was valid since it was negotiated by counsel with ostensible authority.

• The plaintiff claimed she did not authorize her lawyer to settle. The court found the release binding against Kindred but allowed her to continue the case against Mr. Li.

Judgment & Costs:

• The court dismissed the claim against Kindred, ruling the settlement and release were valid.

• The plaintiff was ordered to pay all litigation costs incurred by Kindred, including prior hearings and trial preparation. The exact amount was to be determined.

• The claim against Ouran Li remained unresolved, pending further proceedings.