The defendants brought a motion under Rule 19.08 of the Rules of Civil Procedure to set aside a noting in default and default judgment arising from an action for repayment of a loan.
The court considered the factors articulated by the Court of Appeal governing motions to set aside default judgments, including promptness of the motion, explanation for the default, existence of an arguable defence, prejudice, and the integrity of the administration of justice.
Although the court found the motion was not brought promptly and one defendant failed to provide an explanation for the default, the defendants established an arguable defence on the merits regarding repayment of the loan.
The court concluded that the interests of justice favoured setting aside the default judgment, particularly given the lack of prejudice to the plaintiff and funds being held in trust sufficient to satisfy any eventual judgment.