The defendant brought a motion to set aside two default judgments arising from a breach of contract action involving a technology services agreement.
The court applied the established test for setting aside default judgments, considering delay, explanation for the default, and the existence of a triable defence.
The court held that the motion to set aside the first partial default judgment for the liquidated portion of the claim was brought with undue delay and lacked a reasonable explanation or evidence of a meritorious defence.
However, the court accepted a limited explanation regarding the second judgment for the unliquidated portion of damages and found that issues relating to quantum and equitable remedies warranted adjudication on the merits.
The second judgment was set aside on conditions, including payment of the first judgment and costs.