The taxpayers' counsel entered a settlement agreement with the Minister, which the Minister sought to enforce under s. 169(3). The taxpayers argued that their counsel had not been authorized to enter a settlement offer.
D'Auray J. found that the taxpayers had in fact intended to authorize a settlement. The taxpayers had sent counsel an email stating that they had "decided to settle," that the "decision is final," and to "please make the arrangements with them and we will come to sign the deal." The surrounding evidence likewise indicated a clear understanding that the matter was being settled. The taxpayers' attempts to advance an alternative explanation for their words and conduct were not compelling.