Settling With Multiple Defendants in Ontario: How It Works

Lawsuits with more than one defendant rarely settle all at once. More often, one defendant offers a deal months before the others are even close to negotiating — and that raises a practical question: what happens to your case against everyone else once you've settled with just one of them?

Settling with multiple defendants in the same Ontario lawsuit is common, and the law has developed specific tools to handle it, so that settling with one party doesn't automatically undo your claim against the rest, or leave you or the remaining defendants unfairly exposed.

The Basic Problem: What Happens to the Rest of the Case

If you sue three defendants and settle with one, the lawsuit generally continues against the other two. But the settlement changes the shape of the case — the settling defendant may no longer be an active party at trial, the remaining defendants may try to point to the settling defendant's share of fault, and everyone needs to know how any final judgment will account for what's already been paid.

Joint and Several Liability in Plain Language

Many claims involve defendants who are each partly responsible for the same loss. Where the law treats defendants as jointly and severally liable, a plaintiff can generally pursue any one of them for the full amount, leaving the defendants to sort out their respective shares between themselves afterward (through their own claims against each other). This matters here because it's part of why settling with one defendant doesn't simply end the case — the remaining defendants can still be on the hook for the full loss, subject to credit for what's already been recovered.

Pierringer-Type Agreements Explained

To manage this fairly, Ontario litigation practice makes use of what's often called a Pierringer-type agreement (a settlement structure named after the case where the approach originated, now used across Canadian civil litigation). In broad terms, this kind of agreement:

• Releases the settling defendant from the lawsuit entirely
• Limits the remaining defendants' exposure to their own proportionate share of the loss, rather than the whole amount
• Allows the case to continue against the non-settling defendants without the settling defendant needing to remain involved
• Is typically disclosed to the remaining defendants and the court in some form, since it affects how the trial will be run

This approach lets a plaintiff bank a partial recovery now while preserving the right to pursue the rest of the loss from whoever remains in the case — without forcing the settling defendant to stay tied up in litigation they've already resolved.

How the Claim Against Remaining Defendants Proceeds

Once a partial settlement is in place, the case against the remaining defendants generally continues on its normal track — through discovery, any mediation or settlement conference requirements, and ultimately trial if it doesn't resolve earlier. The main practical differences are that the settling defendant is no longer defending itself, the evidence and arguments may shift accordingly, and the eventual judgment (or further settlements) needs to account for what's already been paid.

Practical Considerations Before Settling With Just One Defendant

1. Understand what you're releasing. Make sure the release is limited to the settling defendant and doesn't inadvertently affect your claim against the others.
2. Check for cross-claims. Defendants often have claims against each other (for contribution or indemnity); a partial settlement can affect those relationships.
3. Consider the evidence you're giving up. A settling defendant with helpful information may become less cooperative once they're out of the case.
4. Get the structure right. Whether the settlement is framed as a straightforward release or a proportionate-share (Pierringer-type) agreement changes how the remaining case plays out — this is not a document to draft without legal advice.

Frequently asked questions