What is a default judgment and how can I have it set aside in Ontario?

A default judgment is issued when a defendant in a civil lawsuit does not file a Statement of Defence within the required time after being served with a Statement of Claim. The plaintiff can then ask the court to grant judgment in their favour without a trial, based solely on the allegations in the Claim.

To have a default judgment set aside in Ontario, you must bring a motion before the court and satisfy the court that there is a reasonable explanation for why you did not defend — such as not being properly served, a misunderstanding, illness, or other exceptional circumstances. The court will also consider whether you have an arguable defence on the merits of the case.

Setting aside a default judgment is not automatic; courts have discretion, and the longer you wait, the harder it becomes. If the creditor has already used the judgment to garnish wages or a bank account, setting it aside may also require undoing those enforcement steps.

Courts generally look for three things when deciding whether to set aside: a reasonable explanation for the delay, a prompt application once you became aware of the judgment, and an arguable defence. Even if you ultimately owe the money, a set-aside motion may be worth pursuing if the amount is wrong or the limitation period had expired before the claim was filed. A lawyer can assess whether your circumstances support the motion.