The Ontario Superior Court of Justice has confirmed that once parties agree on the essential terms of a settlement, the agreement is binding — even if the acceptance is given by email and the final documents are never signed.. In J. v. Loblaw, 2025 ONSC 4755 (CanLII), the court enforced an eight-month severance settlement and dismissed the employee’s wrongful dismissal action.
Background: Termination After Relocation
The Plaintiff worked for Loblaw Companies Limited (“Loblaws”) for more than seven years. In 2022, he relocated from Winnipeg to Ottawa. Shortly after moving, and before the closing date for his new home, Loblaws terminated his employment without cause.
Settlement discussions followed between the plaintiff’s employment lawyer and Loblaws’ in-house counsel. Negotiations addressed both severance and his unique housing situation.
- Loblaws’ Offer: Seven months’ salary continuance, benefits, and a letter confirming employment. They refused to guarantee his mortgage.
- Final Agreement: Eight months’ notice plus $1,500 in legal costs.
On May 28, 2022, the plaintiff’s lawyer emailed: “I can confirm receipt of instructions to accept your most recent proposal, subject to mutual agreement on the supporting documentation.”
When Loblaws later sent the draft Minutes of Settlement, the plaintiff’s lawyer attempted to add four new terms, including making the home purchase a condition of settlement. Loblaws rejected these as un-negotiated, and the plaintiff refused to sign. He then sued for wrongful dismissal.
The Court’s Decision: Settlement Binding Despite Buyer’s Remorse
1. Agreement on Essential Terms
Justice L. Brownstone held that the settlement was binding because the parties had reached an agreement on the essential terms — notice period, severance, and legal costs. The attempt to add new conditions amounted to buyer’s remorse, not a lack of agreement.
2. Scope of the Release
The court rejected the plaintiff’s argument that his housing claim was separate. Because he had negotiated housing issues as part of severance, they were included in the release.
3. Lawyer’s Affidavit
The judge gave little weight to an affidavit sworn by the plaintiff’s lawyer, since it included contested facts outside the lawyer’s personal knowledge. The court noted that employees must provide their own affidavit if they want to contest facts — otherwise an adverse inference may be drawn.
Key Takeaways for Settlement Negotiations
- Acceptance by email is binding — even without signed documents.
- All essential terms must be clear (notice, severance, benefits, release).
- New terms cannot be added later — attempts will be treated as reneging.
- Housing or side issues negotiated during severance talks are covered by the release.
- Employees must swear their own affidavits when contesting facts.
- Summary judgment is appropriate to enforce settlement agreements.
This decision reinforces that once settlement terms are accepted in writing, Ontario courts will enforce the agreement. Employees and employers alike should ensure clarity at the negotiation stage — because buyer’s remorse is not a defence.
This decision is a reminder that once terms are accepted — even by email — you may be bound to them. Getting advice before agreeing can prevent costly mistakes. If you’ve received a settlement offer or are uncertain about your options, our team can help you make an informed decision. Please contact us for a free 30 minute phone consultation.