The defendants brought a motion to set aside a default judgment of $581,787.01 obtained by the plaintiff in relation to a defaulted mortgage.
The court applied the test for setting aside a default judgment and found that while the defendants had no arguable defence regarding the $500,000 principal and accrued interest, they did have an arguable defence regarding the penalties, charges, and costs awarded.
The court partially granted the motion, upholding the judgment for the principal and interest but setting aside the portion relating to penalties, charges, and costs.
