Thus, there are varying degrees of distinction between third party proceedings and the main action, contingent on the degree to which the third party is involved in the main action. Thus, the degree of integration of the actions is, to a large extent, determined by the third party. This is because a third party has the option of disputing the liability of the defendant to the plaintiff. There are good reasons why a third party would want to dispute that liability. For example, in Alberta Treasury Branches v. Toth, 2006 ABQB 83, 393 A.R. 269 (“Toth”), the court held that the third party was liable for the entire amount of a consent judgment between the plaintiff and the defendant, as the third party had not disputed the liability of the defendant in his pleadings. Accordingly, the third party could not contest that liability in the third party proceedings following the settlement. Had the third party disputed the liability, the third party could have challenged the plaintiff and resisted a settlement. Thus, a third party that does not contest the main action must be distinguished from a third party that, through disputing the liability of the defendant to the plaintiff, makes itself a part of the record pursuant to Rule 71(2.1).
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