The moving party sought to set aside a default judgment arising from an action alleging fraudulent conversion, fraudulent misrepresentation, breach of fiduciary duty, and breach of contract in connection with the deposit of employer cheques into a personal bank account.
Applying the three-part test for setting aside a properly obtained default judgment, the court held that although the motion was brought without delay, the moving party did not adequately explain the default and failed to establish any arguable defence on the merits.
The court emphasized repeated admissions of wrongdoing and found the greater prejudice would fall on the responding party if the judgment were set aside.
The motion was dismissed and substantial indemnity costs were awarded.
