Bryan D. Hackett

In ongoing commercial litigation involving claims and counterclaims among several corporate and individual parties, the court issued a procedural endorsement concerning the filing of costs submissions.

The judge directed counsel for the principal parties to appear before the court to address issues relating to how costs submissions should be filed in the matter.

The endorsement did not determine entitlement to costs but required counsel to attend and address the procedural issue before the court.

The defendants by counterclaim moved to set aside a noting in default, a default judgment for $806,000, and writs of execution obtained by the plaintiff by counterclaim.

The court considered the test under the Rules of Civil Procedure for setting aside default judgments, requiring prompt action, a plausible explanation for the default, and an arguable defence on the merits.

The court found the moving parties acted expeditiously after discovering the default, that the failure to respond resulted from an oversight where a warning letter was mistakenly filed before counsel reviewed it during ongoing settlement discussions, and that there was an arguable defence tied to allegations of breach of non‑compete obligations.

The court also found it unreasonable for opposing counsel to obtain default judgment and execute writs without effective notice while engaged with counsel for the moving parties.

In the interests of justice, the default judgment was set aside and the writs withdrawn.