Who Knew that Mary Carter was Involved in Construction Law?   A
Mary Carter agreement is a settlement agreement between a
plaintiff and defendant in which the defendant remains an active
party to the litigation and the claim also proceeds against
other parties. The Courts have always insisted that a Mary
Carter agreement be immediately disclosed to all parties. But
what happens if a Mary Carter agreement is not immediately
disclosed to all parties? The Ontario Court of Appeal recently
faced this situation.  The decision is a reminder of the drastic
remedies available to the Courts if litigation is conducted
unfairly. While Mary Carter agreements are most often used in
personal injury or medical malpractice actions, they can also be
used to settle construction litigation. When they are, the
parties must be scrupulous to ensure that the agreement is
immediately disclosed. Otherwise, any further claims in the
action may well be dismissed.