The defendant brought an ex parte motion for default judgment on a counterclaim after the plaintiffs failed to deliver a defence to counterclaim and were noted in default.
The counterclaim alleged breach of a revenue-sharing arrangement and related misconduct concerning chiropractic services provided through a clinic, including withholding revenue, depositing insurance payments, and interference with contractual relations involving a locum practitioner.
The court accepted the pleaded allegations as true and assessed damages based on unpaid revenue, liquidated damages relating to a restrictive covenant breach, diminished income resulting from the breakdown of the business relationship, legal costs related to the counterclaim, and disbursements.
Pre-judgment interest was awarded pursuant to the Courts of Justice Act.
Judgment was granted in favour of the counterclaimant.