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Motion to set aside noting in default granted where plaintiff faced significant prejudice and defendants faced none.
The plaintiff mortgagee brought a motion to set aside a noting in default on the defendants' counterclaim in a mortgage enforcement action.
The plaintiff's previous counsel failed to file a defence to the counterclaim, and the plaintiff was noted in default 22 days after the pleading was served.
The court applied the factors for setting aside a noting in default, finding that while there was an unexplained 12-month delay, the plaintiff would suffer significant prejudice if the default stood, whereas the defendants would suffer no prejudice.
The court concluded there were no extreme circumstances requiring the plaintiff to demonstrate a meritorious defence, and granted the motion to set aside the noting in default.
Appeal from section 160 assessment dismissed due to lack of documentary evidence proving transfers were loan repayments.
The appellant appealed a section 160 assessment regarding $82,055.08 transferred to her by her husband while he had an outstanding tax debt.
The appellant argued that $47,750 of the transfers were repayments of shareholder loans she had made to him.
The Tax Court of Canada dismissed the appeal, finding insufficient documentary evidence to support the assertion that the transfers were loan repayments, and drew an adverse inference from the appellant's failure to testify.
