Ontario Court Confirms Low Threshold For Setting Aside Default Judgment

In 2355305 Ontario Inc. v. Savannah Wells Holdings Inc., 2019 ONSC 1220, the Ontario Superior Court of Justice recently confirmed the relatively low threshold for the granting of a motion to set aside the noting in default of a defendant, and the cost consequences that can accrue to a defendant that waits to bring such a motion.

Procedural History

In September 2015, the plaintiffs commenced a claim against a franchisor and other parties relating to the purchase of an existing franchise and asserted remedial claims under the Arthur Wishart Act (Franchise Disclosure), 2000. Such claims included declarations affecting the personal liability of the officer and director of the franchisor corporation and a related corporation, and damages in excess of $600,000. The claim followed discussions of the dispute held amongst the parties' lawyers.