The moving defendants, Greenvilla Development Group Inc. and Alan Lam, brought a motion to set aside a default judgment of $504,589.53 plus significant interest, rendered against them in July 2018.
The court considered the five factors for setting aside default judgments under Rule 19.08: promptness, plausible excuse for default, arguable defence on the merits, relative prejudice to parties, and integrity of justice.
Despite delays in prosecuting the motion, the court found the moving defendants had an arguable limitations defence and that the prejudice of upholding the large judgment outweighed the plaintiff's prejudice.
The motion was granted on terms, requiring the moving defendants to pay $15,500 in costs and file a statement of defence within 30 days, with the case to proceed by summary procedure.