Canada Judgment

Court of Appeal for Ontario

1238915 Ontario Limited v. Ferri

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Source document

01

Holding and result

The motion judge did not err: the appellant failed to bring the motion promptly or pursue it diligently, the claimed release was disbelieved, the merits could not be considered because the pleadings had been struck for non-compliance, and there was established prejudice and tarnishing of the administration of justice; therefore the motions were properly dismissed and the appeal is dismissed.

Court disposition

Appeal dismissed

Orders

  • Appeal dismissed
  • Costs of the appeal awarded to the respondent in the amount of $13,000 all inclusive

02

Material facts

Parties

1238915 Ontario Limited

Plaintiff (respondent) Counsel: Cameron D. Neil

Andrew Adam Ferri

Defendant (appellant) Counsel: Simon Sigler; Reihan Ahmed

Interfund Mortgage Corporation

Defendant (appellant) Counsel: Simon Sigler; Reihan Ahmed

Universal Management Consultants Inc.

Defendant (appellant) Counsel: Simon Sigler; Reihan Ahmed

Niagara Home Builders Inc.

Defendant (appellant) Counsel: Simon Sigler; Reihan Ahmed

Connie Nothdurft

Defendant (appellant) Counsel: Simon Sigger; Reihan Ahmed

Amounts and remedies

  • Judgment Principal Amount: CAD 110,000
  • Punitive Damages: CAD 50,000
  • Costs of the Appeal Awarded: CAD 13,000

03

Procedural history

  1. Posture

    Civil / Appeal From Motion to Set Aside Default Judgment

04

Questions and positions

Legal issues

Party arguments

Applicant
The appellant argued the default judgment should be set aside under Rule 19.08 and Rule 59.06 on grounds including alleged fraud and a purported valid release; the motion judge erred in applying the statutory test and in refusing to consider the merits; challenged authorization of the respondent's agent.
Respondent
The respondent argued the motions were not brought promptly or pursued diligently, the appellant's explanation was not credible, the defence could not be considered because pleadings had been struck for non-compliance, there was prejudice and tarnishing of the administration of justice, and costs should be affirmed.

05

Court’s reasoning

  1. 01

    Rules of Civil Procedure, Rule 19.08

    A motion to set aside a default judgment under Rule 19.08 requires promptness, a credible explanation for delay, and consideration of the merits of the proposed defence

  2. 02

    Rules of Civil Procedure, Rule 59.06

    Relief from a judgment alleged to result from fraud is governed by Rule 59.06 and requires timely and diligent pursuit

  3. 03

    Court of Appeal deference principle

    Findings of credibility and prejudice by a trial judge attract appellate deference; appellate interference is limited absent palpable and overriding error

06

Ratio, limits and disposition

Ratio decidendi

The motion judge did not err: the appellant failed to bring the motion promptly or pursue it diligently, the claimed release was disbelieved, the merits could not be considered because the pleadings had been struck for non-compliance, and there was established prejudice and tarnishing of the administration of justice; therefore the motions were properly dismissed and the appeal is dismissed.

Obiter and limits

  • It was inappropriate to consider the merits of the defence where the pleadings were struck for non-compliance with an order.
  • No basis existed for appellate intervention on the other issues raised by the appellant.

Court disposition

Appeal dismissed

  • Appeal dismissed
  • Costs of the appeal awarded to the respondent in the amount of $13,000 all inclusive

Source and reliance status

Court of Appeal for Ontario · 6 March 2026

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Judgment text

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Source document

Court of Appeal for Ontario

Judgment· 6 March 2026

2026 ONCA 169

1238915 Ontario Limited v. Ferri Collection Decisions of the Court of Appeal Date 2026-03-06 Neutral citation 2026 ONCA 169 Docket numbers COA-25-CV-0762 Judges van Rensburg, Katherine; Miller, Bradley; Coroza, Steve A. Subject Civil Decision Content

COURT OF APPEAL FOR ONTARIO CITATION: 1238915 Ontario Limited v. Ferri, 2026 ONCA 169 DATE: 20260306 DOCKET: COA-25-CV-0762 van Rensburg, Miller and Coroza JJ.A.

BETWEEN 1238915 Ontario Limited Plaintiff (Respondent) and Andrew Adam Ferri, Interfund Mortgage Corporation, Universal Management Consultants Inc., Niagara Home Builders Inc. and Connie Nothdurft* Defendants (Appellant*) Simon Sigler and Reihan Ahmed, for the appellant Cameron D. Neil, for the respondent Heard and rendered orally: March 3, 2026 by video conference On appeal from the order of Justice David L. Edwards of the Superior Court of Justice, dated April 16, 2025.

REASONS FOR DECISION [1] Over a lengthy course of litigation, the appellant sought to adjourn a 2017 trial date. The motion judge, who was to conduct the trial that day, granted the adjournment, but on terms that the appellant pay an outstanding costs order within 30 days, failing which the respondent would be entitled to bring a motion without notice to strike the pleadings. The costs were not paid, the motion was brought, the pleadings were struck, and the uncontested trial proceeded. [2] Judgment was ordered in the amount of $110,000 against the appellant and others, as well as $50,000 in punitive damages. [3] Seven years later, the appellant brought a motion to set aside the judgment on the basis of Rule 19.08 and Rule 59.06 alleging fraud. A second motion sought an order finding that Mr. Mammoliti had no authorization to act on behalf of the respondent. [4] The motions were dismissed. [5] The appellant appeals on the basis that the motion judge erred in his application of the test for setting aside a default judgment under Rule 19.08. The motion judge made no error. The motion was not brought promptly or pursued diligently. The motion judge rejected the purported explanation for not bringing the motion promptly – that the appellant believed she had a valid release from the respondent. Having reviewed the record, the motion judge disbelieved the bona fides of the

explanation. [6] It was not appropriate to consider the merits of the defence, as the defence was struck for non-compliance with an order. [7] There was a finding of prejudice and tarnishing of the administration of justice. We would not interfere with these findings. [8] There is no basis for appellate intervention on any other issue raised in the appellant’s factum or oral argument. [9] The appeal is dismissed. [10] Costs of the appeal are awarded to the respondent in the amount of $13,000 all inclusive. “K. van Rensburg J.A.” “B.W. Miller J.A.” “S. Coroza J.A.”

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Authorities

Authorities used by the court

Cases, legislation, regulations, and constitutional provisions identified in the available record.

Rules of Civil Procedure, R.R.O. 1990, Reg. 194, Rule 19.08

Legislation

Legislation referenced in the available case record.

Rules of Civil Procedure, R.R.O. 1990, Reg. 194, Rule 59.06

Legislation

Legislation referenced in the available case record.

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