Case summary: Hlus v Hlus

Case summary of Hlus v Hlus, 2023 BCSC 835

The case of Hlus v Hlus involves an application by the claimant to amend her pleadings in a family law claim and to set aside a settlement agreement reached by the parties in June 2020. The parties began living in a marriage-like relationship in 1995, were married in 1997, and separated in 2019. They have three daughters, with the two oldest living exclusively with the respondent and the youngest living with both parents on a 50/50 basis.

The claimant commenced a family law claim in 2019, which was settled in 2020 through a signed minutes of settlement. However, in 2023, the claimant filed an application seeking to set aside the settlement agreement, alleging that she was misled in regard to financial matters or was not provided with full and proper disclosure, and that the settlement agreement resulted in an unconscionable bargain. The claimant sought to set aside the settlement agreement pursuant to s. 93(3) of the Family Law Act.

The respondent opposed the application to amend the pleadings on the basis that the claimant must instead bring an "application" pursuant to Supreme Court Family Rules to set the agreement aside. The respondent argued that to do otherwise would be an abuse of process and that he would be severely prejudiced given that he had complied with the settlement agreement and millions of dollars in cash and assets had exchanged hands as a result.

The court considered the relevant rules and concluded that the application to amend the pleadings was appropriate. The court noted that the claimant must bring the application to set aside the settlement agreement within two years of discovering the grounds for making the application, as provided in s. 198(3) of the Family Law Act. The court also stated that the standard to be met for a further amendment of the pleadings is low, and amendments of pleadings should be allowed as necessary to ensure the real issues between the parties are determined.

In summary, the case of Hlus v Hlus involves an application by the claimant to amend her pleadings in a family law claim and to set aside a settlement agreement reached by the parties in June 2020. The court concluded that the application to amend the pleadings was appropriate and that the claimant must bring the application to set aside the settlement agreement within two years of discovering the grounds for making the application. The case highlights the importance of full and proper disclosure in family law matters and the potential consequences of an unconscionable bargain.

Full text available at: https://canlii.ca/t/jx721