Is a settlement of a claim made by or against a person under a disability binding without court approval?

In Ontario, a settlement of a claim made by or against a person under a disability, such as a minor or a person who is mentally incapable, requires court approval to be binding. This is because individuals under a disability may not fully understand the implications of a settlement or may be unable to provide informed consent.

The court's role is to protect the interests of individuals under a disability, ensuring that any agreement made on their behalf is fair and in their best interests. Without such approval, a party could potentially explore legal avenues later on to challenge the validity of the settlement, claiming that it was not in their best interest or that they did not understand it.

This requirement reflects a protective approach in the law to safeguard vulnerable individuals from making uninformed decisions that could adversely affect their rights or benefits in legal matters. Hence, any settlement involving these individuals must be presented to the court for review and approval before it can be deemed binding.