The defendant moved to set aside a noting in default and default judgment in a construction lien action.
The court found that the defendant failed to provide an acceptable explanation for the default, as counsel deliberately chose not to file a defence despite clear warnings from the plaintiff.
However, applying the test for setting aside default judgments, the court weighed the prejudice to both parties.
Finding that the plaintiff's prejudice was compensable by costs, while the defendant would suffer considerable prejudice by being unable to present a viable defence and having its bank accounts frozen, the court granted the motion and set aside the default judgment.
