Key Issue: 11331841 Canada Corp. (Titan Fireproofing Corp./Titan Group), Alireza Moghei (aka Ali Moghei), and Mehdi Mowghei (Defendants) requested to set aside a Default Judgment, nullify garnishments, and return garnished funds related to $85,941 in unpaid invoices for fireproofing materials.
Background:
- Default Judgment was entered against the Defendants after they failed to respond to a Statement of Claim for unpaid invoices from 2021.
- Defendants claim they were not properly served with the Statement of Claim and were unaware of the judgment until their accounts were garnished.
Court Decision:
- Rule 19.08: Court can set aside a Default Judgment on just terms.
- Defendants met the criteria:
- Filed their motion promptly.
- Provided a plausible reason for non-compliance (lack of proper notice).
- Presented an arguable defense (13 out of 14 invoices were time-barred under the Limitations Act).
- No prejudice to the Plaintiff by setting aside the judgment.
Outcome:
- Default Judgment and garnishments were set aside.
- Funds garnished (except $3,051 related to one uncontested invoice) were ordered returned.
- The precise amount for monetary award was not determined.
Next Steps: Defendants granted leave to file a defense.