The defendants moved to set aside default judgments entered against them in a construction-related debt collection and breach of trust action.
While the plaintiffs consented to setting aside portions of the judgments against certain defendants and specific claims, they opposed setting aside the remaining portions against the corporate defendants.
The court found that the defendants’ evidence of a defence on the merits was weak and inadequately supported, relying on an affidavit from corporate counsel lacking personal knowledge and providing minimal particulars.
However, considering the timing of service during the holiday period, inconsistent positions taken by the plaintiffs, and potential prejudice, the court exercised its discretion to set aside the remaining default judgment provisions on condition that the corporate defendants pay $300,000 into court as security.
The action was also ordered transferred from the Commercial List to the Toronto Region Civil List.