Malik v. Eagle Mountain Farms (A Partnership)

Malik v. Eagle Mountain Farms (A Partnership)

Default judgment set aside because the claim as pleaded was against the Partnership which owed nothing on the loan; defendants therefore had a complete meritorious defence to the pleaded claim and the correctness of a default must be assessed against the pleadings as they existed at default; cross-appeal dismissed...

Source-derived case information.

Citation
2021 BCCA 379
Parties
Respondent / Appellant on Cross Appeal / Plaintiff: Raminder Kaur Malik; Appellant / Respondent on Cross Appeal / Defendant: Eagle Mountain Farms (A Partnership); Appellant / Respondent on Cross Appeal / Defendant: Jasbir Singh Banwait; Appellant / Respondent on Cross Appeal / Defendant: Manmohan Singh Heer
Court
British Columbia Court of Appeal
Jurisdiction
Canada
Judgment Date
12 October 2021
Procedural Posture
Civil Appeal From Chambers Decision of Supreme Court of British Columbia / Court of Appeal Judgment on Appeal and Cross Appeal (final)
Outcome
Appeal allowed; default judgment against the Appellants set aside; cross-appeal dismissed
Legal Topics
Default Judgment, Setting Aside Judgment, Misnomer and Amendment of Pleadings, Nunc Pro Tunc, Special Costs, Garnishment
Source Language
english
Civil Procedure Contract Law Guarantee Law Costs Law Default Judgment Setting Aside Judgment Misnomer and Amendment of Pleadings Nunc Pro Tunc +2 more

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Parties

Raminder Kaur Malik

Respondent / Appellant on Cross Appeal / Plaintiff

Eagle Mountain Farms (A Partnership)

Appellant / Respondent on Cross Appeal / Defendant

Jasbir Singh Banwait

Appellant / Respondent on Cross Appeal / Defendant

Manmohan Singh Heer

Appellant / Respondent on Cross Appeal / Defendant

Procedural Posture

Civil Appeal From Chambers Decision of Supreme Court of British Columbia / Court of Appeal Judgment on Appeal and Cross Appeal (final)

Legal Issues

  1. 1 Whether the chambers judge erred in refusing to set aside the default judgment against the guarantors
  2. 2 Whether the Miracle Feeds factors were applied correctly and exhaustively
  3. 3 Whether the defendants had a meritorious defence given the pleadings named the Partnership not the corporation

Ratio Decidendi

Default judgment set aside because the claim as pleaded was against the Partnership which owed nothing on the loan; defendants therefore had a complete meritorious defence to the pleaded claim and the correctness of a default must be assessed against the pleadings as they existed at default; cross-appeal dismissed because special costs were properly awarded for reckless and careless conduct in prosecuting a meritless claim and executing garnishment against the Partnership.

Court Disposition

Appeal allowed; default judgment against the Appellants set aside; cross-appeal dismissed

Orders

  • Default judgment against the Appellants set aside
  • Cross-appeal dismissed and chambers judge's award of special costs against the respondent upheld