CIVIL PROCEDURE - Judgments and orders - Default judgments

Law360 Canada ( April 29, 2022, 6:41 AM EDT) -- Motion by the defendant Sandra to set aside a 2017 default judgment and any enforcement steps filed. Sandra initially appeared at a 2019 Case Conference to schedule a motion to set aside the default judgment. The plaintiff Monster Snacks, incorporated by Kailani, commenced an action against Sandra in 2016 arising out of a transaction to purchase by the plaintiff the vending machine and other business assets of Suddenly Soda from Sandra in 2015. The plaintiff obtained an order for substituted service and alleged the Order and the Statement of Claim were mailed to Sandra in compliance with the Substituted Service Order. Sandra advised plaintiff’s counsel, Maltz, that she only received a partial copy of the Statement of Claim. She wrote twice to Maltz in 2016 indicating the non-compliance with the Substituted Service Order and asking for the complete Statement of Claim so she could defend the claim. Maltz never responded to this correspondence and filed a Requisition for Noting in Default and Default Judgment in September 2016. Default judgment was issued in January 2017. Maltz took no steps to enforce the default judgment. The default judgment was assigned to RBC. No evidence was filed by RBC whether the Statement of Claim was served in accordance with the terms of the Substituted Service Order or otherwise, and whether any Affidavit of Service was filed along with the Requisition for the Default Judgment that service under the Substituted Service Order was properly completed. In 2019, Bowden, counsel for RBC, contacted Sandra to arrange for a debtor examination. It was at that point that she first learned of the default judgment....
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