The moving defendants sought to set aside a noting in default and a default judgment arising from a claim by investors alleging they were misled about a corporation's business and seeking return of their investments.
Applying the interests of justice framework for setting aside default judgment, the court found the defendants had not acted promptly, had no plausible excuse for deliberately choosing not to defend, and failed to file evidence giving their proposed defence an air of reality.
The court also found prejudice favoured the plaintiffs given competing creditor claims and the defendants' asset constraints.
The motion was dismissed and partial indemnity costs were fixed at $8,000.00 inclusive.
