The defendants brought a motion to set aside a default judgment and to strike the claim against the individual defendant.
The court found that the corporate defendant was properly served and the default judgment was not irregularly obtained.
Applying the Mountain View Farms test, the court set aside the default judgment, noting the defendants moved promptly and had an arguable defence, despite lacking a reasonable explanation for the default.
The court declined to strike the claim against the individual defendant, finding a reasonable cause of action for breach of trust was pleaded under the Construction Act.
The action was transferred to Small Claims Court, and costs were awarded to the plaintiff.
