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International Construction Law Review

CORRESPONDENTS’ REPORT

CANADA

D L Marston, JD, BSc, P Eng

Marston International ADR, Toronto

CONFIDENTIALITY IN MEDIATION: CIVIL AND COMMON LAW CONSIDERATIONS IN PROVING SETTLEMENT AGREEMENT TERMS

The Supreme Court of Canada, in its 2014 decision in Union Carbide Inc v Bombardier Inc 2014 SCC 35, addressed the issue of whether communications during the course of a confidential contractual mediation that ultimately led to a settlement agreement could be admissible as evidence where a dispute arose over the scope of the settlement. The case helpfully examines distinctions between the common law rule of settlement privilege (including, importantly, the exception to it that permits the disclosure of protected communications for the purpose of proving the existence or scope of a settlement) and confidentiality as agreed upon pursuant to express provisions in a mediation agreement.
This case arose out of a dispute in Quebec and a contract to which Quebec law applies. The province of Quebec is Canada’s only civil law jurisdiction. Given the increase in mediation of construction disputes in many international jurisdictions it may be helpful for mediation participants to consider how the issue in this case might be addressed in their respective civil or common law jurisdictions. Mediation is commonplace in Canada, often arising contractually. Whether the mediation arises by contract, court procedure or by agreement reached in the interest of avoiding the possibility of protracted and costly arbitration or litigation, mediation participants in all jurisdictions have an interest in considering the law that will apply to their mediation and its consequences.
The decision for the majority was written by Mr Justice Wagner. Some background information on Justice Wagner may be of particular interest to readers of The International Construction Law Review. Prior to his appointments to the Bench, including the Quebec Superior Court for the District of Montreal, the Court of Appeal of Quebec, and the Supreme Court of Canada, Justice Wagner was one of Canada’s leading construction lawyers and a Fellow of the Canadian College of Construction Lawyers.

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