Can extrinsic evidence be used to determine whether a settlement agreement was sham?
British Columbia, Canada
The following excerpt is from Cirius Messaging Inc. v Epstein Enterprises Inc., 2018 BCSC 1859 (CanLII):
More recently, in Luu v. Wang, 2011 BCSC 1078, Justice Pearlman relying in part on Bryce, concluded that extrinsic evidence was admissible to determine both whether a settlement agreement made between the parties was a sham and in order to determine the true agreement between the parties; at paras. 103, 105–107. He considered the evidence that the defendants tendered in support of their position that the agreement in question was a sham and he ultimately rejected that position; at paras. 108–135.
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