The appellants appealed a decision refusing to set aside a default judgment against them for unpaid freight services and breach of statutory trust.
A five-judge panel of the Court of Appeal was convened to reconsider its prior decision in Umlauf v. Umlauf regarding deemed admissions on default.
The Court overruled Umlauf, holding that while facts pleaded in a statement of claim are deemed admitted when a defendant is noted in default, conclusions of law and mixed fact and law are not.
However, the Court dismissed the appeal, finding the motion judge made no error in refusing to set aside the default judgment because the appellants failed to file an adequate record and the evidence supported the findings of a 2% monthly interest agreement and the director's personal liability for knowing assistance in the corporation's breach of statutory trust.
