Following a motion in which the defendant successfully obtained an order setting aside a default judgment, the court determined the appropriate costs consequences.
The default judgment had arisen after the defendant failed to attend an examination for discovery, leading to the striking of the statement of defence, a noting in default, and enforcement proceedings.
Although the court exercised its discretion under Rules 37.14, 19.03, and 19.08 of the Rules of Civil Procedure to set aside the default proceedings in the interests of adjudicating the case on its merits, it found the defendant largely responsible for the procedural failures that caused the default.
The court held that the relief granted constituted an indulgence and ordered the defendant to pay the plaintiff’s enforcement costs on a substantial indemnity basis and additional costs of the motion.