The plaintiff surety company brought a motion for default judgment against the defendants for reimbursement under an Indemnity and Security Agreement.
The defendants, who were officers and directors of a company that went into receivership, had agreed to indemnify the plaintiff for any losses arising from a Tarion Warranty Corporation Bond.
The plaintiff paid out $690,000 under the bond and incurred $194,570.67 in related expenses.
The court found that the deemed admissions from the defendants' failure to defend, combined with affidavit evidence, established liability.
The court granted default judgment for the full amount claimed, plus pre-judgment interest at the contractual rate of 18%.