The applicant law firm obtained a default judgment in Small Claims Court against the respondent for unpaid legal fees.
The respondent successfully moved to set aside the default judgment, citing mental health issues that caused him to miss settlement conferences.
The applicant sought judicial review of the order setting aside the default judgment and brought a motion for a stay to prevent the release of funds held in trust from the sale of the respondent's home.
The Divisional Court dismissed the motion for a stay, finding that the applicant failed to establish a serious issue to be tried, irreparable harm, or that the balance of convenience favoured a stay.
The court noted that there is no right of appeal from an interlocutory Small Claims Court order and judicial review cannot be used to circumvent this.
