Mountain View Farms Ltd. v. McQueen

Mountain View Farms Ltd. v. McQueen

The motion judge exceeded the scope of rule 19.08 by making a final determination of the applicable interest rate on the record before him; the correct remedy was to set aside the 24% interest provision, permit the respondent to file a defence, and remit the interest-rate issue for determination rather than substitute a definitive 5% rate on a motion to set aside default judgment.

Citation
2014 ONCA 194
Parties
Plaintiff/appellant: Mountain View Farms Ltd.; Defendant/respondent: George Donald McQueen
Court
Court of Appeal for Ontario
Jurisdiction
Canada
Judgment Date
14 March 2014
Procedural Posture
Civil / Appeal From Motion to Set Aside/default Judgment (court of Appeal)
Outcome
Appeal allowed in part.
Legal Topics
Default Judgment, Setting Aside Default Judgment, Rule 19.08, Prejudgment and Postjudgment Interest, Standing, Admissibility of Affidavit Evidence
Source Language
English
Civil Procedure Contract Judgment Enforcement Interest Law Default Judgment Setting Aside Default Judgment Rule 19.08 Prejudgment and Postjudgment Interest +2 more

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Parties

Mountain View Farms Ltd.

Plaintiff/appellant

George Donald McQueen

Defendant/respondent

Procedural Posture

Civil / Appeal From Motion to Set Aside/default Judgment (court of Appeal)

Legal Issues

  1. 1 Whether the motion judge had jurisdiction under rule 19.08 to vary the interest rate in a default judgment
  2. 2 Whether the respondent (or his son) had standing to bring the motion
  3. 3 Admissibility and weight of the respondent's affidavit evidence

Ratio Decidendi

The motion judge exceeded the scope of rule 19.08 by making a final determination of the applicable interest rate on the record before him; the correct remedy was to set aside the 24% interest provision, permit the respondent to file a defence, and remit the interest-rate issue for determination rather than substitute a definitive 5% rate on a motion to set aside default judgment.

Court Disposition

Appeal allowed in part.

Orders

  • Paragraph 1 of the motion judge's order (which varied the rate of interest in the default judgment) set aside.
  • The 24% interest provision in the default judgment is set aside.