Bank of Montreal v. Ismail, 2012 ONCA 129 deals with the interpretation of correspondence purporting to embody a litigation settlement. In that consideration the Court made a general observation regarding interpretation:
[18] The determination of whether a settlement was reached in this case did not require an inquiry into the parties' subjective intentions. Since the correspondence was in writing, the issue could be determined based on an objective reading of the contents: Olivieri v. Sherman, 2007 ONCA 491, 86 O.R. (3d) 778 (C.A) at para. 44.
[19] In any interpretation exercise, the supporting documentation must be read in context. In this case, the motion judge erred in focusing on particular letters without considering them in the context of the history of the correspondence, particularly the correspondence to which they specifically referred.
[20] When the correspondence between the parties' solicitors is considered in context, there was no agreement on the amount of the payout of the mortgage. The parties were at cross purposes on that issue. There was no settlement.
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