The defendants brought a motion to set aside a default judgment obtained by the plaintiff.
The court applied the five-part test for setting aside a default judgment, finding that the motion was brought promptly, the failure to file a defence was adequately explained, and the defendants demonstrated an arguable case on the merits based on a draft Statement of Defence and Third Party Claim.
The court concluded that the plaintiff would not suffer prejudice that could not be compensated by costs.
The motion was granted, the default judgment was set aside, and the defendants were awarded costs of $3,000.