Motion to Set Aside Default Judgment: Mr. Zhu and Guru Constrarchit Ltd. sought to overturn the default judgment from January 10, 2023, which required them to pay Ms. Li significant damages and costs.
Background:
Ms. Li hired Guru Constrarchit Ltd. for demolition and construction of a luxury home in 2017.
Ms. Li terminated the contract in 2018 due to alleged deficiencies.
Experts identified numerous deficiencies and estimated correction costs at $740,532.
Guru Constrarchit Ltd. registered a lien for $47,136.25.
Litigation ensued, and Mr. Zhu failed to maintain adequate legal representation, resulting in a default judgment.
Default Judgment Details:
Guru and Mr. Zhu were found liable for breach of contract, conversion, and breach of trust.
Total damages and costs awarded: $749,229.52.
Court's Analysis:
Prompt Motion: Mr. Zhu filed promptly after learning of the judgment.
Explanation for Default: Mr. Zhu's reasons were not credible; he failed to comply with court orders.
Arguable Defence:
Breach of contract: No arguable defence.
Conversion and breach of trust: Some arguable defences.
Punitive damages and costs: Partially arguable.
Conclusion:
Judgment on conversion, breach of trust, and punitive damages ($99,628.58) set aside.
Remaining judgment, including breach of contract damages and costs, upheld.
Orders:
Parties to submit written submissions on costs by specified dates.
Next trial management conference scheduled for October 2024.
