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Motion to set aside default judgment dismissed due to unexplained delay and lack of arguable defence.
The plaintiff obtained default judgment against the defendant on a claim for a personal guarantee of a corporate loan.
The defendant moved to set aside the default judgment, arguing he was only a minority shareholder and had received assurances he would not be personally liable.
The court dismissed the motion, finding the defendant failed to adequately explain his delay in defending the action and moving to set aside the judgment.
Furthermore, the court held the proposed defence lacked an air of reality given the clear, unconditional terms of the signed guarantee.
Contempt costs sanction survives bankruptcy discharge under Bankruptcy and Insolvency Act.
The respondent in the underlying family proceeding sought a declaration that a costs sanction imposed for civil contempt had been extinguished by her discharge from bankruptcy.
The sanction arose from repeated breaches of court-ordered access involving the parties’ child.
The court held that it had jurisdiction to determine whether the debt survived bankruptcy.
Applying s.178 of the Bankruptcy and Insolvency Act, the court found the costs award constituted a sanction similar to a fine or penalty imposed for an offence and therefore survived bankruptcy.
The court also rejected the argument that the debt had been satisfied through alleged set-off for childcare, airfare expenses, or matrimonial property proceeds.
