- Once that's done, how the plaintiff gets to judgment depends on what kind of claim it is.
- Getting this distinction right matters, because trying to treat an unliquidated claim as if it were liquidated can slow the whole process down or invite a challenge later.
- A default judgment usually covers more than just the amount originally claimed: - The principal amount owed - Prejudgment interest, calculated under the Courts of Justice Act, at a rate…
Once a defendant has failed to respond to a lawsuit and been noted in default, the next milestone is a default judgment — an actual order from the court granting the plaintiff what they asked for, without a trial. Getting there involves a few different paths depending on the type of claim, and even after judgment is obtained, a defendant isn't always out of options.
This guide covers both sides: how a plaintiff moves from a noted default to an enforceable judgment, and how a defendant can try to have that judgment set aside.
Step One: The Defendant Has to Be Noted in Default First
Default judgment can't happen in isolation — it follows a defendant being noted in default after failing to serve and file a defence within the time allowed (20 days if served in Ontario, 40 days elsewhere in Canada or the U.S., 60 days outside Canada and the U.S.). Once that's done, how the plaintiff gets to judgment depends on what kind of claim it is.
Liquidated vs. Unliquidated Claims
| Claim type | What it means | How judgment is obtained |
|---|---|---|
| Liquidated | A fixed, calculable amount — an unpaid invoice, a loan balance, a dishonoured cheque | Can often be signed administratively without a hearing, once the amount is documented |
| Unliquidated | An amount that requires the court's judgment to determine — general damages, for example | Generally requires a motion, and sometimes a hearing to assess the appropriate amount |
Getting this distinction right matters, because trying to treat an unliquidated claim as if it were liquidated can slow the whole process down or invite a challenge later.
What a Default Judgment Typically Includes
A default judgment usually covers more than just the amount originally claimed:
- The principal amount owed
- Prejudgment interest, calculated under the Courts of Justice Act, at a rate set periodically by the province — confirm the current rate before relying on any figure
- Costs, generally following the principle that the unsuccessful party contributes to the successful party's costs, with the amount left to the court's discretion
- Postjudgment interest going forward, also set periodically, until the debt is paid
Enforcing a Default Judgment
A default judgment carries the same enforcement tools as any other civil judgment: garnishment of wages or bank accounts, a writ of seizure and sale against property, and examining the debtor about their income and assets. Getting the judgment is the starting point, not the finish line — the court doesn't collect on your behalf.
Setting Aside a Default Judgment
A defendant who was noted in default and had judgment entered against them isn't necessarily stuck. They can bring a motion asking the court to set the judgment aside. Courts weigh the circumstances as a whole, generally considering:
- [ ] Whether there's a reasonable explanation for missing the original deadline
- [ ] Whether the proposed defence appears to have genuine merit, not just a bare denial
- [ ] Whether the defendant moved reasonably promptly once they learned about the judgment
- [ ] Whether setting the judgment aside would unfairly prejudice the plaintiff
There's no rigid formula guaranteeing an outcome — it's a discretionary, fact-specific decision. A defendant who sat on the problem for months after learning about it is in a much weaker position than one who acted right away.
What Happens to Enforcement While a Motion to Set Aside Is Pending
Obtaining a default judgment doesn't automatically pause once a defendant files a motion to set it aside — enforcement steps can continue unless the defendant separately asks for, and obtains, a stay. This is a common trap: a defendant focused only on the set-aside motion can still find their bank account garnished in the meantime.
Frequently asked questions
Is there a deadline to move to set aside a default judgment?
There's no single fixed deadline that applies to every case, but courts generally expect a defendant to act quickly once they become aware of the judgment. The longer you wait without a good reason, the harder the motion becomes.
What if I never received the Statement of Claim at all?
Improper service is one of the stronger grounds for setting aside a default judgment. If you can show you were never validly served, that goes directly to whether the judgment should stand at all.
Can a default judgment be enforced before a motion to set it aside is decided?
Generally, yes, unless the defendant separately obtains a stay of enforcement. Bringing the motion alone doesn't automatically pause garnishment or a writ of seizure and sale.
Does Small Claims Court handle default judgment the same way?
Small Claims Court follows its own rules and uses a "Plaintiff's Claim" rather than a "Statement of Claim," but the underlying idea is the same: a non-responding defendant can be noted in default, and the plaintiff can then move toward judgment.
This is a litigation question
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