Blue Chip Leasing Corporation v. 4K Properties Ltd.

Blue Chip Leasing Corporation v. 4K Properties Ltd.

Adjudicator found defendants had a reasonable excuse because failure to file a defence resulted from their counsel’s negligent and misleading conduct, defendants had relied on counsel and believed the matter withdrawn, there is an arguable defence on the merits and the claimant would not be sufficiently prejudiced; therefore the Quick Judgment was set aside and the claim rescheduled with a new 20‑day defence period commencing on notice of the new date.

Citation
2019 NSSM 74
Parties
Claimant/respondent: Blue Chip Leasing Corporation; Defendant/applicant: 4K Properties Ltd.; Defendant/applicant: Linda King; Defendant/applicant: Achilleus King
Court
Nova Scotia Small Claims Court
Jurisdiction
Canada
Judgment Date
16 July 2019
Procedural Posture
Small Claims Court – Contract Dispute (breach of Lease) / Application to Set Aside Quick Judgment / Application Hearing to Set Aside Quick Judgment (s.23(2) Small Claims Court Act)
Outcome
Application granted; Quick Judgment set aside and matter re‑scheduled for hearing
Legal Topics
Quick Judgment, Setting Aside Judgment, Reasonable Excuse, Failure to File Defence, Solicitor Negligence/misconduct, Natural Justice, Credibility Assessment
Source Language
English
Civil Procedure Contract Law Insurance Law Legal Ethics Evidence Quick Judgment Setting Aside Judgment Reasonable Excuse +4 more

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Parties

Blue Chip Leasing Corporation

Claimant/respondent

4K Properties Ltd.

Defendant/applicant

Linda King

Defendant/applicant

Achilleus King

Defendant/applicant

Procedural Posture

Small Claims Court – Contract Dispute (breach of Lease) / Application to Set Aside Quick Judgment / Application Hearing to Set Aside Quick Judgment (s.23(2) Small Claims Court Act)

Legal Issues

  1. 1 Whether defendants have a reasonable excuse for failing to file a defence within the prescribed time under s.23(2) of the Small Claims Court Act
  2. 2 Whether there is an arguable defence to the claim
  3. 3 Whether the claimant would be prejudiced by setting aside the Quick Judgment

Ratio Decidendi

Adjudicator found defendants had a reasonable excuse because failure to file a defence resulted from their counsel’s negligent and misleading conduct, defendants had relied on counsel and believed the matter withdrawn, there is an arguable defence on the merits and the claimant would not be sufficiently prejudiced; therefore the Quick Judgment was set aside and the claim rescheduled with a new 20‑day defence period commencing on notice of the new date.

Court Disposition

Application granted; Quick Judgment set aside and matter re‑scheduled for hearing

Orders

  • Quick Judgment dated September 20, 2018 set aside/overturned
  • Matter to be re‑scheduled for hearing in Small Claims Court