The defendants moved to set aside an order striking their statement of defence, their noting in default, and a default judgment, arguing they were unaware of the proceedings due to their former counsel's failure to communicate.
The court granted the motion, finding the defendants acted promptly, provided an adequate explanation for default (lack of knowledge due to former counsel's actions), and demonstrated an arguable defence on the merits.
The court emphasized the importance of hearing the matter on its merits and ordered the plaintiff to repay the security into court, conditional on the defendants complying with prior disclosure orders.