StraightVac Services Ltd ("StraightVac") served a Statement of Claim on Sunshine Oilsands Ltd ("Sunshine") in June 2021 by sliding the document under the door of Sunshine’s office, which was closed due to COVID-19.
Sunshine did not respond, leading to StraightVac filing for a default judgment in July 2022. The court validated service and awarded a judgment of $242,812.26 plus interest and costs.
Sunshine later received notice of the default judgment and sought to have it set aside, arguing improper service.
Key Issues:
Improper Service: Applications Judge Schlosser set aside the default judgment, citing that sliding documents under a door is not a valid method of service.
Request for Adjournment: StraightVac's request for adjournment was denied. The court found that the application would not have affected the decision, as the focus was on the service irregularity.
Affidavit of Service: The affidavit did not provide sufficient evidence that the Statement of Claim reached Sunshine, contributing to the court’s decision to set aside the judgment.
Outcome:
The court upheld the decision to set aside the default judgment and allowed Sunshine 20 days to file a statement of defence.
Original Default Judgement (now set aside): $242,812.26.
