Alberta Court Of Appeal Comments On The Test For Setting Aside A Default Judgment

In Yehya v Thomas, 2019 ABCA 164, the court of appeal revisited the test for setting aside a default judgment where there is a procedural flaw.

The plaintiffs contracted with Las Palmas, a home construction company of which the defendant was sole director and shareholder. Progress on the home was halted when Las Palmas experienced financial difficulty, and accordingly a statement of claim was served on the defendant by email, who responded indicating "no objections will be filed". The defendant was noted in default 20 days later. Following the defendant making an assignment in bankruptcy, a subsequent stay of proceedings took effect authorized under s. 69.3 of the Bankruptcy and Insolvency Act two days prior to the finding of a default judgment against the plaintiff and Las Palmas.