Overview:
Heard in the Ontario Superior Court of Justice – East Region before Associate Justice K. Perron on January 23, 2025, this case involved RFA Bank of Canada as the plaintiff and Lee Darvin Weinkauf & Merlie Otadora Weinkauf as the defendants. The defendants sought to set aside a default judgment and vacate enforcement measures. The decision was issued on February 7, 2025.
Key Facts:
- The defendants’ mortgage matured in December 2023, and they attempted renewal but were in arrears due to bank account fraud.
- RFA refused renewal, demanded full payment, and issued a Notice of Sale after failed communications.
- A Statement of Claim was served in March 2024, but the defendants did not file a defence.
- Default judgment for $445,103.52 was granted on May 10, 2024, followed by a Notice Demanding Possession.
Court’s Findings:
- Promptness: Motion was filed quickly.
- Excuse for Default: Defendants’ claims of misunderstanding and stress were not plausible.
- Arguable Defence: No evidence showed wrongful conduct by RFA, improper refusal to renew, or ability to repay arrears.
- Prejudice: Setting aside the judgment would impose unnecessary costs and delays.
- Justice System Integrity: Upholding default judgment maintained procedural fairness.
Outcome:
- Motion dismissed; enforcement to proceed.
- Defendants ordered to pay RFA $6,000 in costs within 30 days.
