Ontario Superior Court sets interest rate on unpaid settlements

• The Ontario Superior Court set a 19.9% interest rate on unpaid settlement amounts in Selleck v Stanutz Estate.
• The court confirmed a $1.1951 million settlement and itemized costs, then awarded additional amounts for interest and costs.
• The decision may impact clients' financial obligations and negotiations in personal injury cases.
• Lawyers advising clients on personal injury settlements in Ontario should carefully consider the potential consequences of their clients' decisions.

The court ultimately directed the defendant to pay post-judgment interest on the settlement amount from the settlement date until the payment date, at a rate of 19.9%.

A recent Ontario Superior Court decision has set a significant precedent for interest rates on unpaid settlement amounts in personal injury cases. In Selleck v Stanutz Estate, the court confirmed a $1.1951 million settlement and itemized costs, then awarded additional amounts for interest, substantial indemnity costs, and partial indemnity costs. The case arose from a 2017 motor vehicle collision that resulted in significant life-altering injuries to the plaintiff. The defendant's estate accepted the settlement offer on December 22, 2025, but the parties disputed costs and the form of release, leaving the settlement unpaid. The court ultimately directed the defendant to pay post-judgment interest on the settlement amount from the settlement date until the payment date, at a rate of 19.9%.

The Ontario Superior Court's decision in Selleck v Stanutz Estate has implications for lawyers advising clients on personal injury settlements in Ontario. The court's award of post-judgment interest on the settlement amount is significant, as it may impact a client's financial obligations and negotiations. In Ontario, courts have previously awarded substantial indemnity costs to plaintiffs who have incurred significant expenses in pursuing their tort actions. However, the court in Selleck v Stanutz Estate exercised its discretion to deny the plaintiff's request for substantial indemnity costs, instead awarding partial indemnity costs of $11,000 for the April 17 hearing. The decision highlights the importance of careful cost management and negotiation in personal injury cases.

The Ontario Superior Court's decision in Selleck v Stanutz Estate has significant implications for personal injury settlements in Ontario. The award of post-judgment interest on the settlement amount may impact a client's financial obligations and negotiations, making it essential for lawyers to carefully consider the potential consequences of their clients' decisions. Furthermore, the court's exercise of discretion in denying substantial indemnity costs highlights the importance of cost management and negotiation in personal injury cases. As the Ontario Superior Court continues to shape the landscape of personal injury law, lawyers must remain vigilant in their pursuit of justice for their clients.

Lawyers advising clients on personal injury settlements in Ontario should note the recent Superior Court decision setting a 19.9% interest rate on unpaid settlement amounts, which may impact their clients' financial obligations and negotiations.

Source: Original reporting via [Source Title]