The defendant moved to set aside a default judgment and sought leave to file a statement of defence and counterclaim, or alternatively to stay enforcement of the judgment pending determination of a counterclaim alleging deficiencies in contractual work.
The court found no evidence that the defendant intended to defend the action when the defence was due and noted repeated warnings and follow-ups from the plaintiff before default judgment was obtained.
The alleged deficiencies were not raised until months after judgment and enforcement efforts.
Applying the principles governing motions to set aside default judgment, the court held the defendant had effectively made a conscious decision not to participate in the litigation and had not demonstrated a meritorious defence at the relevant time.
The default judgment remained enforceable, although the defendant’s counterclaim could proceed independently.
