The Crown have filed a Notice of Motion, which will be heard tomorrow morning at 9:00 a.m. at the court house (address below). The Motion is to rescind the five settlement agreements entered into beginning June 21, 1996 and ending January 29, 1997. Failing that, the Crown wants an order allowing the Crown's counsel to withdraw from the case in order that they may give evidence regarding the Defendant's intent in entering into the settlement agreements. If successful in either part of the motion, the court's assessment of damages which began on February 12,1996, will be delayed. This could result in extending the trial by as much as a year. A copy of the Notice of Motion, as filed this morning, is attached. Court Address: Ontario Court, General Division 7th Floor, 145 King Street West Toronto, Ontario Time: 9:00 a.m.

(ATTACHMENT)

ONTARIO COURT OF JUSTICE (GENERAL DIVISION)

BETWEEN:

T1T2 LIMITED PARTNERSHIP and 2922797 CANADA INC.

Plaintiffs

- and -

THE ATTORNEY GENERAL OF CANADA

Defendant

NOTICE OF MOTION

THE Defendant will make a motion to the Honourable Justice Haley on Thursday, the 27th day of February, 1997, at 9:00 a.m., or as soon after that time as the motion can be heard, at 145 King Street West, Toronto, Ontario.

PROPOSED METHOD OF HEARING: The motion is to be heard orally.

THE MOTION IS FOR:

1. an Order that the settlement agreements be rescinded, with leave to both sides to call further evidence as each side considers appropriate; or, in the alternative,

2. An Order, granting leave to defendant's counsel to withdraw from the case so that he or she may give evidence regarding the defendant's intent in entering into the settlement agreements.

THE GROUNDS FOR THE MOTION ARE:

Rule 37.01 and Rule 51.05 of the Rules of Civil Procedure.

THE FOLLOWING DOCUMENTARY EVIDENCE will be used at the hearing of the motion:

1. Letter dated February 26, 1997, from I.G. Whitehall to R.G. Slaght;

2. Trial Transcript dated Monday, January 6, 1997, Volume 131, pages 11070 to 11076;

3. Trial Transcript dated January 29, 30, and February 6, 1997, Volume 142, pages 11815 to 11818;

4. Exhibits 88, 140, 189, 247, 286, 305, and 347.

5. Such further and other material as counsel may advise and this Honourable Court permit.

Date: February 26, 1997.

I.G. Whitehall, Q.C.
Department of Justice
66 Wellington Street West
Suite 3850
Toronto, Ontario
M5K 1H1

Tel: (416) 952-6482
Fax: (416) 952-6496
Solicitor for the Defendant

TO:

Mr. Ronald Slaght, Q.C.
Messrs. Lenczner, Slaght, Royce, Smith, Griffin
Barristers and Solicitors
130 Adelaide Street West
Suite 2300
Toronto, Ontario
M5H 3P5
Solicitors for the Plaintiffs