Introduction:
The case involved a dispute over a failed real estate transaction. James Park and Susan Park sought the return of a $50,000 deposit after the deal fell through due to a pipeline easement issue. Wallis Zbitnew, the seller, refused to refund the deposit, resulting in a default judgment against her. After her death, her estate, represented by Philip Johnson and Murray Johnson, applied to set aside the judgment.

Key Legal Issue:
The central issue was whether the estate could challenge the default judgment under The Survival of Actions Act (SAA). The Chambers judge dismissed the estate’s application, reasoning that the right to set aside the judgment did not survive Zbitnew’s death, as it was not a “cause of action” under the SAA.

Court of Appeal Decision:
The Court of Appeal disagreed with the Chambers judge, finding that the SAA did not bar the estate’s procedural right to set aside the judgment. It held that the original claim by the Parks, grounded in contract law, survived against the estate under common law principles. The estate’s application to set aside the judgment was a procedural step in defending the claim, not a new cause of action.

Outcome and Costs:
The appeal was allowed, and the Chambers decision was set aside. The matter was remitted to the Court of King’s Bench for a determination on whether the default judgment should be set aside. There was no award for costs on appeal due to the case’s unusual circumstances.