The appellant, David Aiello, appealed the dismissal of his motion to set aside a default judgment and noting in default.
The Court of Appeal found that the motion judge erred in principle and made palpable and overriding errors of fact in applying the factors for setting aside default judgment from Mountain View Farms Ltd. v. McQueen.
Specifically, the motion judge misapplied the first and second factors by considering the entire litigation history, ignored relevant facts regarding the appellant's default, and applied too high a standard for an arguable defence, failing to consider the quantum of damages as a viable defence.
The Court concluded that it would be unjust to prevent the appellant from having his day in court, given the significant prejudice of a multi-million dollar judgment and the overarching principle of determining proceedings on their merits.