Settlement Agreement - Éric Lafleur and Publicité Dézert Inc.

April 1, 2008

This document is a translation

(Civil Division)


No: 500-17-024768-056







As final settlement of the lawsuit between them, docket number 500-17-024768-056, the parties agree as follows:

WHEREAS Éric Lafleur operated the Publicité Dézert Inc. communications agency, which acted, during the periods referred to in the amended originating motion, as a subcontractor of Lafleur Communication for sponsorship contracts with the Government of Canada;

WHEREAS on March 10, 2005, a civil action was initiated in this matter by the Government of Canada against several co-defendants and whereas, as a result of an amendment, Éric Lafleur and Publicité Dézert Inc. were added as co-defendants in the said action;

WHEREAS through this action, the Government of Canada seeks a solidary judgment against Éric Lafleur, Publicité Dézert Inc. and Jean Lafleur in the amount of $2,537,981, excluding GST;

WHEREAS Publicité Dézert Inc. is an inoperative company whose registration was struck off ex officio on May 2, 2003;

WHEREAS Éric Lafleur filed an assignment in bankruptcy on March 7, 2007 with trustee Le Groupe Boudreau Richard Inc.;

WHEREAS the Government of Canada filed a proof of claim for $2,537,981 in the bankruptcy of Éric Lafleur;

WHEREAS the Government of Canada, in this bankruptcy case (500-11-029995-079), served and filed a motion to continue the proceedings against the bankrupt on the basis that the debtor's debt to the Government of Canada could not, given the nature thereof, be extinguished by his discharge in bankruptcy;

WHEREAS the Government of Canada also served and filed an objection to the debtor's discharge in bankruptcy;

WHEREAS the parties wish to settle between them the pending proceedings and actions according to the terms and conditions set out in this Settlement Agreement, which form an indivisible whole, and the parties hereby acknowledge that the present Agreement is completed for the sole purpose of avoiding the costs and inconvenience of litigation;


  1. The above preamble is part of this Settlement Agreement;
  2. The Government of Canada agrees to sign this Settlement Agreement on the express condition that the debtor's bankruptcy statement is a true reflection of his financial situation and that all of his assets have been declared. Éric Lafleur, by signing this Agreement, is confirming that that is, in fact, the case;
  3. Should the Government of Canada discover at a later time that Éric Lafleur has not disclosed all of his assets, the present Settlement Agreement shall become null and void and the totality of the debt to the Government of Canada claimed in the civil action shall become payable;
  4. Éric Lafleur consents to judgment on the Government of Canada's motion to be authorized to continue the action in civil court and, to that end, signs the Consent to Judgment forming Appendix 1 of the present Settlement Agreement;
  5. Éric Lafleur consents to judgment in the civil action in the amount of $2,140,000 and acknowledges that, of such amount, the sum of $150,000 constitutes a non releasable debt through his discharge in bankruptcy and, to that effect, signs the Consent to Judgment forming Appendix 2 of the present Settlement Agreement;
  6. By signing these Consents to Judgment, the Government of Canada withdraws its objection to the discharge of the bankrupt;
  7. Subject to compliance with the following conditions, the Government of Canada undertakes not to seek enforcement of the judgment to be rendered in the civil action:
    • the sum of $150,000, being the unreleased debt, shall be payable in yearly instalments of $15,000;
    • a cheque in the amount of $30,000, payable to the order of the Receiver General for Canada, representing the instalments for the years 2008 and 2009, shall be remitted to the Government of Canada within sixty (60) days of the discharge of the trustee and no laterthan September 30, 2008;
    • the balance of $120,000 shall be payable in eight (8) yearly instalments of $15,000 each, payable on September 30th of every year as of September 30, 2010;
  8. Should Éric Lafleur for any reason fail to make any of these payments, the Government of Canada shall enforce the judgment in respect of the balance payable, which will be $150,000 less any amount already received from Éric Lafleur;
  9. In consideration of the signing of this Settlement Agreement, the Government of Canada and Éric Lafleur hereby give to each other and to their respective representatives and assigns full and final release from all past, present and future rights, claims, remedies or indemnities of any nature whatsoever that they have, might have, or might claim to have against the other party or the representatives or assigns of the other party by virtue of or flowing directly or indirectly from the sponsorship and advertising contracts forming the subject of these proceedings;
  10. The Government of Canada abandons, in favour of the other solidary defendants, its claim for the share of liability of Éric Lafleur and Publicité Dézert Inc. for the purposes of the proceedings in the event that said share of liability is greater than the sums of money reaped by Éric Lafleur and Publicité Dézert Inc. However, the Government of Canada maintains its claims against the other solidary defendants for the sums of money not reaped directly by Éric Lafleur and Publicité Dézert Inc.;
  11. This Settlement Agreement is not confidential, and Éric Lafleur is hereby informed that the Government of Canada intends to make it public by posting it on the Government of Canada Web site. However, all communications between the parties, their legal counsel and their representatives, including all documents and information having led to the signing of this Agreement, remain privileged and confidential and shall not be disclosed unless the parties agree otherwise or a court with jurisdiction to order disclosure so orders;
  12. This Settlement Agreement shall be binding on the parties hereto and their respective successors and assigns;
  13. The parties shall take all measures required to give effect to this Settlement Agreement;
  14. The parties hereto acknowledge and declare that they have read and understood the terms and conditions of this Settlement Agreement and that they have consulted with legal counsel;
  15. The parties recognize that the present Settlement Agreement is contingent on the approval of the Court, to the withdrawal of the opposition of the Government of Canada to the discharge of Éric Lafleur in his bankruptcy file and to his discharge in bankruptcy;
  16. This Settlement Agreement constitutes a transaction within the meaning of articles 2631 et seq. of the Civil Code of Québec to which the parties have freely consented without promise, representation or intimidation of any kind.


at _________________ MONTRÉAL, this 27 day of March 2008

Per : [signature of Me Micheline Van Erum]

MONTRÉAL, this 31 day of March 2008

Per: [signature of Éric Lafleur]