The defendant, Integral Development LLC, moved to set aside a default judgment of $8.05 million arising from a failed commercial real estate transaction.
The defendant argued it had a plausible excuse for failing to defend the action and an arguable defence on the merits, specifically that a condition in the agreement of purchase and sale was never met.
The court applied the five-factor test for setting aside a default judgment and found that the defendant's excuse was plausible and its defence had an air of reality.
The court exercised its discretion to set aside the default judgment, allowing the defendant to defend the claim on its merits.
