Fair Settlement Offer Still Effective at Hearing Stage
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2 min read
Overview
The Alberta Human Rights Tribunal confirmed that a fair and reasonable settlement offer can justify dismissal of a complaint, even after it has been referred to a hearing. The complainant, Okeke, alleged gender-based discrimination during a detention incident, but rejected two “with prejudice” settlement offers from CPS. The Tribunal ruled that it does have the authority to summarily dismiss a complaint post-referral if the settlement offer is substantively fair and reasonable. This decision reinforces that employers and service providers should strategically consider well-structured settlement offers throughout the human rights process. If such offers are clearly reasonable and rejected by the complainant, they may support dismissal of complaints, even in later stages.
The Alberta Human Rights Commission in Okeke v Calgary Police Service has confirmed that a fair and reasonable settlement offer can lead to dismissal of a complaint, even after referral to a hearing, providing clarity to respondents on the continuing importance of reasonable settlement offers throughout the human rights process.
Background
The complainant, Okeke, was arrested by Calgary Police Service (“CPS”) at Calgary airport after presenting an expired driving licence as identification while attempting to board a flight. During her detention, she was denied access to her personal hygiene items, which she alleged constituted gender-based discrimination. She also alleged a CPS officer used a derogatory gender-based slur against her. Okeke filed a complaint with the Alberta Human Rights Commission (“Commission”) alleging discrimination on various grounds.
The Director of the Commission dismissed the allegations of discrimination on the basis of race, colour, and place of origin in Okeke’s complaint. While the Chief of the Commission and Tribunals’ review of the Director’s dismissal was ongoing, CPS offered Okeke $15,000 plus pre-judgment interest in exchange for a full release. The offer, made “with prejudice”, was not accepted. After the Chief dismissed the request for review of the dismissal of the complaint, the remaining portion of the complaint, alleging gender-based discrimination, proceeded to a Tribunal hearing. CPS renewed its offer again, serving Okeke and the Director another “with prejudice” offer of $15,000 plus updated interest, and clarified that (as requested by Okeke) the requested release would not affect her ongoing civil claim against CPS. The second offer was also rejected.
Key Issues
A key issue was whether the Tribunal retained the power to summarily dismiss a complaint after referral to hearing where there has been a fair and reasonable settlement offer. While the Alberta Human Rights Act explicitly grants this power to the Director of the Commission, it is silent on whether the Tribunal can do the same after a referral has been made. Tribunal Member Karen Scott confirmed that the Tribunal does have this power, noting that “reading down its own authority would not be in keeping with the purpose and objectives of the Act” (para 68). The Tribunal explained:
“Where, as is the case here, a settlement is proposed and rejected after the completion of the Director and/or the Chief’s screening role, it may be appropriate for the Tribunal to consider whether the settlement is fair and reasonable and whether, in the circumstances, the complaint should be dismissed.” [para 69]
The Tribunal stressed that any dismissal must still be based on a fair and reasonable offer, considering a number of factors including the merits of the complaint and the parties’ risks, recognizing that there will be a range of fair and reasonable settlement offers. A respondent must clearly demonstrate that the proposed settlement is reasonable in the circumstances. The Tribunal also recognized that a full and final release may also reasonably include a non-disparagement clause, depending on the circumstances.
In this case, after a review of the applicable factors, the Tribunal was satisfied that the settlement offer was fair and reasonable, and as a result of Okeke’s refusal to accept it, the complaint was summarily dismissed.
Takeaway
A properly structured settlement offer can save respondents significant time and cost, even at the later stages of the human rights process. Employers and service providers should consider the strategic value of “with prejudice” settlement proposals as a risk-management measure and, where appropriate, should consider making a clear, fair, and well-documented offer. If the complainant rejects it, you may seek summary dismissal of a complaint, even at the hearing stage.
If you have questions about structuring settlement offers or managing a human rights complaint, contact Evie Maldonado in Edmonton, Steve Eichler in Calgary or any member of our Labour + Employment Group.
Link to decision: Okeke v Calgary Police Service, 2025 AHRC 115
