The defendants moved to set aside a default judgment and noting in default arising from a trailer lease dispute after several years of procedural delay.
The plaintiff opposed the motion, arguing prejudice and reliance on the longstanding judgment and invoking the doctrine of laches.
Applying the flexible test for setting aside default judgments articulated in appellate jurisprudence, the court considered delay, explanation for the default, and whether the defendants had an arguable defence.
Although the litigation history involved significant delay attributable to financial difficulties and prior counsel, the court found the individual defendant had a potentially meritorious defence and that fairness favoured permitting the matter to be defended.
The court set aside the default judgment and noting in default, subject to the plaintiff’s ability to amend its statement of claim.
