Any settlement reached on behalf of a person without legal capacity, including a minor or an adult who is mentally incapable, is not effective until it has been reviewed and approved by a Judge.
As of June 16, 2025, significant updates have been made to how these settlement approval motions are handled in Ontario. Under Ontario Regulation 50/25, changes to Rule 7.08 have modernized the process, placing a stronger emphasis on privacy, efficiency, and judicial oversight.
Previously, a motion to approve a settlement had to be served on all other parties in the proceeding, and the supporting materials, such as affidavits from the litigation guardian and their lawyer, were filed in full, even if they contained sensitive or privileged details. This often resulted in unnecessary delays and the potential disclosure of personal information that had no bearing on the fairness of the settlement.
Under the new rule, a motion or application for Court approval no longer needs to be served on any other party, unless a Judge orders otherwise. Lawyers must also redact any information that is privileged or could prejudice the person under disability before filing materials with the Court. The complete, unredacted version must still be provided privately to the Judge but will not form part of the public Court record. Another change allows most settlement approval motions to be decided in writing, meaning a hearing or factum is not required unless specifically ordered by the Court.
While the procedural requirements have been simplified, the key purpose of the rule remains unchanged. The Court must still be satisfied that the settlement is fair, reasonable, and in the best interest of the person under disability. The materials must continue to include the settlement terms, supporting evidence, and the opinions of both the litigation guardian and their lawyer.
These amendments represent a positive step toward protecting privacy while maintaining judicial oversight. They make the process more efficient for families and counsel while ensuring that the rights of vulnerable parties remain fully protected.
At JRJ LAW our lawyers are experienced in handling settlement approvals involving minors and persons under disability. We guide our clients through every stage of the process with care, ensuring that their settlements are properly approved and that their interests are fully safeguarded.
Contact JRJ LAW today for a free consultation at 1-844-DIAL JRJ to learn more about how these new rules may affect your case.