The appellant insurance company appealed a decision dismissing its motion to set aside a default judgment obtained by the respondent homeowners.
The respondents had sued for damages following unsatisfactory home repairs after a flood.
The appellant failed to file a statement of defence despite multiple extensions, and delayed several months before moving to set aside the default judgment.
The Divisional Court found that while the motions judge erred in concluding there was no arguable defence on the merits, she correctly found the appellant failed to explain the default or move promptly.
Weighing all factors, the court exercised its discretion to dismiss the appeal, finding the justice of the case required denying relief due to the appellant's unexplained delay.