The case involves allegations of breach of contract, fraud, and unjust enrichment related to Dhillon's claimed 15% ownership interest in Simcoe Marina Towns Inc. and a property in Orillia, Ontario.
Key Points:
The Plaintiff obtained a default judgment on November 3, 2023, due to the Defendants’ failure to respond. The judgment awarded Dhillon:
Recognition of a 15% interest in the corporation and property.
$161,835.87 from net sale proceeds.
Restitution with interest and costs.
Defendants’ Motion: Filed to set aside the default judgment, arguing they were not properly served and had not received notice of the action.
Court’s Analysis:
Service of the Claim:
The Defendants claimed that they were never personally served; instead, service was done through alternative means, which they argued was insufficient.
The court agreed, noting the Plaintiff’s failure to properly notify Defendants or their known legal counsel.
Default Judgment:
The Defendants were not informed about the noting in default or the uncontested trial date, violating procedural fairness.
Merits of Defence:
The court found that the Defendants demonstrated an “air of reality” to their defense, challenging the Plaintiff's claims regarding ownership interests and financial contributions.
Decision:
The court granted the Defendants’ motion to set aside the default judgment and noting in default.
Ordered the Plaintiff to vacate any writs of seizure and allowed the Defendants to file a Statement of Defence.
Costs:
Parties were instructed to submit written submissions regarding costs if they could not reach an agreement.
