The Appellants (Hills) appealed a motion judge's refusal to set aside a default judgment obtained by the Respondent (Hiley) on a defendant's claim.
The Appellants had failed to file a defence to the defendant's claim, mistakenly believing their original plaintiff's claim sufficiently addressed the issues.
The court found the motion judge erred by not considering the net effect of the refusal on the interests of justice, as it would foreclose the Appellants' ability to advance their original claim.
The appeal was allowed, the default judgment was set aside, and the Appellants were permitted to file a defence.
No costs were awarded on the appeal due to the Appellants' initial error.
