Ken Jackson Construction Limited v. Macklin

Ken Jackson Construction Limited v. Macklin

Default judgment and noting in default were set aside because the Registrar had no jurisdiction to enter judgment against the individual appellants — the claims against them were not for a debt or liquidated demand and lacked particulars for breach of trust and for the asserted interest rate; the motion judge misapplied discretion under Kisel by failing to allow adjudication on the merits given the appellants' arguable defences and absence of prejudice.

Citation
2017 ONCA 324
Parties
Plaintiff (respondent): Ken Jackson Construction Limited; Defendant (appellant): Geoffrey Macklin; Defendant (appellant): Jeremey Macklin; Defendant (appellant): Macklin Bros. Construction Ltd.
Court
Court of Appeal for Ontario
Jurisdiction
Canada
Judgment Date
21 April 2017
Procedural Posture
Civil / Appeal From Motion to Set Aside Noting in Default and Default Judgment (court of Appeal)
Outcome
Appeal allowed; decision of motion judge set aside; default judgment and noting in default set aside.
Legal Topics
Default Judgment, Setting Aside Judgment, Registrar Jurisdiction, Piercing the Corporate Veil, Breach of Trust, Conversion, Interest on Judgment, Costs
Source Language
English
Civil Procedure Corporate Law Trusts and Remedies Contract Default Judgment Setting Aside Judgment Registrar Jurisdiction Piercing the Corporate Veil +4 more

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Parties

Ken Jackson Construction Limited

Plaintiff (respondent)

Geoffrey Macklin

Defendant (appellant)

Jeremey Macklin

Defendant (appellant)

Macklin Bros. Construction Ltd.

Defendant (appellant)

Procedural Posture

Civil / Appeal From Motion to Set Aside Noting in Default and Default Judgment (court of Appeal)

Legal Issues

  1. 1 Whether the Registrar had jurisdiction to sign default judgment against individual appellants for amounts invoiced to the corporation
  2. 2 Whether the claims against individuals constituted a debt or liquidated demand
  3. 3 Whether the statement of claim pleaded sufficient particulars for breach of trust and conversion to support a money judgment

Ratio Decidendi

Default judgment and noting in default were set aside because the Registrar had no jurisdiction to enter judgment against the individual appellants — the claims against them were not for a debt or liquidated demand and lacked particulars for breach of trust and for the asserted interest rate; the motion judge misapplied discretion under Kisel by failing to allow adjudication on the merits given the appellants' arguable defences and absence of prejudice.

Court Disposition

Appeal allowed; decision of motion judge set aside; default judgment and noting in default set aside.

Orders

  • Default judgment and noting in default against the appellants are set aside.
  • Appellants shall serve and file their statement of defence within thirty days of release of these reasons.