What is the test for admitting a settlement agreement?

The trial judge gave a first decision in relation to the admissibility of the settlement agreement, and the weight to be given to it. Having decided that the agreement was not protected by settlement privilege, he further concluded as follows (National Bank v. Potter 2012 NSSC 76): 55. Even though settlement privilege does not apply to concluded settlement agreements in this context, such agreements must still meet the traditional evidentiary tests for admission. In this case, the settlement agreement is an admissible hearsay statement on the basis of the exception against declarations against interest made by a party. 56. The settlement agreement is logically probative of the issues in dispute in this action. The settlement agreement is permissible similar fact evidence. Its probative value outweighs any prejudicial effect that may result from admission. Therefore, the settlement agreement is admissible for the truth of its contents subject to weight based on all the other evidence that is presented at trial.

The trial judge went on to give a second decision in the trial proper (National Bank v. Potter 2013 NSSC 248). He considered and interpreted the admissions made in the settlement agreement, as part of his consideration of the whole of the evidence.