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Court of Appeal overrules Umlauf, holding legal conclusions are not deemed admitted on default judgment.
The appellants appealed a decision refusing to set aside a default judgment against them for unpaid freight services and breach of statutory trust.
A five-judge panel of the Court of Appeal was convened to reconsider its prior decision in Umlauf v. Umlauf regarding deemed admissions on default.
The Court overruled Umlauf, holding that while facts pleaded in a statement of claim are deemed admitted when a defendant is noted in default, conclusions of law and mixed fact and law are not.
However, the Court dismissed the appeal, finding the motion judge made no error in refusing to set aside the default judgment because the appellants failed to file an adequate record and the evidence supported the findings of a 2% monthly interest agreement and the director's personal liability for knowing assistance in the corporation's breach of statutory trust.
Contempt motion struck as an abuse of process for attempting to re-litigate a settled action.
The parties settled an eight-year litigation regarding custom-built moulds.
Following the settlement, the defendants brought a motion for contempt alleging the plaintiff violated interlocutory orders by improperly storing two moulds outdoors, causing them to deteriorate.
The plaintiff brought a motion to strike the contempt motion.
The court granted the motion to strike, finding the underlying orders did not mandate any specific storage method and the contempt motion was a frivolous and vexatious attempt to re-litigate the settled action.
