“The law regarding a lawyer`s authority to bind his client to a settlement is clearly set out in two decisions:
a. In Scherer v. Paletta1966 CanLII 286 (ON CA), [1966] 2 O.R. 524, the Court of Appeal states the following:
The authority of a solicitor to compromise may be implied from a retainer to conduct litigation unless a limitation of authority is communicated to the opposite party. A client, having retained a solicitor in a particular matter, holds that solicitor out as his agent to conduct the matter in which the solicitor is retained. In general, the solicitor is the client’s authorized agent in all matters that may reasonably be expected to arise for decision in the particular proceedings for which he has been retained. Where a principal gives an agent general authority to conduct any business on his behalf, he is bound as regards third persons by every act done by the agent which is incidental to the ordinary course of such business or which falls within the apparent scope of the agent’s authority.
b. In Dick v. McKinnon, 2014 ONCA 784, at para. 4, the Court of Appeal states:
This court has observed that it is well-established law that “a solicitor of record has the ostensible authority to bind his or her clients and that opposing counsel are entitled to rely upon that authority in the absence of some indication to the contrary.””