The respondent perfected a construction lien and set the action down for trial within the two-year limitation period under s. 37(1) of the Construction Lien Act.
However, the respondent failed to file a defence to the appellant's counterclaim before setting the action down, contrary to Rule 48.01 of the Rules of Civil Procedure.
The appellant moved to discharge the lien, arguing the setting down was a nullity.
The Court of Appeal held that setting the action down while pleadings were open was a procedural irregularity curable by Rule 2.01.
Curing the irregularity did not have the effect of extending the strict two-year limitation period, as the action was factually set down within the required timeframe.