The appellant appealed a Small Claims Court decision reinstating a default judgment and garnishment proceedings.
The parties had previously signed Minutes of Settlement requiring the appellant to pay $4,000, with a default clause allowing for a $15,000 judgment if payments were missed.
The appellant stopped payment on the settlement cheques, triggering the default clause.
The Divisional Court dismissed the appeal, finding no palpable and overriding error in the lower court's factual findings and holding that the default clause was not unconscionable given that both parties were represented by counsel when the settlement was reached.
