Corporate defendants moved under Rule 19.03 of the Rules of Civil Procedure to set aside a noting of default and obtain leave to deliver a statement of defence in an action for unpaid accounting services.
The court considered the discretionary factors governing relief from default, including the explanation for the failure to defend, the promptness of the motion, and potential prejudice.
The evidence showed the corporate defendants did not have actual knowledge of the action due to issues with service and acted promptly once the claim came to their attention.
The court found a plausible explanation for the delay and no prejudice to the plaintiff.
In the interests of justice, the noting of default was set aside and the defendants were granted time to deliver their defence.
