The appellant appealed an order refusing to set aside a registrar's order dismissing her action as abandoned due to delay.
The Court of Appeal found that the motion judge erred by overlooking strong evidence that the respondents suffered no actual prejudice from the litigation delay or the delay in bringing the set-aside motion.
The respondents' conduct, including requesting a waiver of defence and later serving a statement of defence, belied their claims of prejudice.
The court emphasized that the absence of prejudice and the importance of deciding cases on their merits should take precedence.
The appeal was allowed, and the dismissal orders were set aside.