The plaintiffs appealed an order refusing to set aside a registrar's order that dismissed their motor vehicle accident claim for delay.
The defendant had entered bankruptcy shortly after being served, triggering an automatic stay under the Bankruptcy and Insolvency Act.
The Divisional Court allowed the appeal, finding that the Master erred by failing to consider the ultimate justice of the case, given the lack of prejudice to the insurer.
Furthermore, the court held that the bankruptcy stay deprived the registrar of jurisdiction to dismiss the action, rendering the dismissal order a nullity.