The defendants brought a motion to set aside default steps taken by the plaintiff and to strike, stay, or dismiss the action.
The court found that the plaintiff's counsel acted improperly in noting the defendants in default, as the defendants had promptly indicated their intention to bring a motion to strike/stay the action, which constitutes a defence.
The court also determined that the plaintiff's action was duplicative of an existing lien action by Prompt Builders Inc. and violated the corporate separateness principle (*Foss v. Harbottle*), as the plaintiff, as a sole shareholder, was suing for damages owed to the corporation.
The court granted the motion, setting aside the noting in default and dismissing the plaintiff's action, without prejudice to the plaintiff's right to amend the original lien action to include any personal claims.
Costs were awarded to the defendants on a substantial indemnity basis for the default issue and partial indemnity for the rest, totaling $8,500.
