The defendants brought a motion to set aside a default judgment obtained by the plaintiffs in a mortgage enforcement action.
The defendants' counsel had served a Notice of Intent to Defend and requested a brief indulgence due to the defendants' cognitive disabilities, but the plaintiffs' counsel obtained default judgment without replying or providing notice.
The court found the plaintiffs' counsel's actions to be unprofessional and set aside the default judgment as of right.
Alternatively, the court found the defendants had an arguable defence on the merits, alleging unconscionability, undue influence, and deficient independent legal advice regarding the mortgage.
The motion was granted, and costs were awarded to the defendants on a substantial indemnity basis.