Flex Park Inc. v. Covello

Flex Park Inc. v. Covello

The motion judge correctly applied the test for setting aside a default judgment and found no evidence that the law clerk's fraudulent actions affected the appellant's mortgage or its enforceability; the fresh evidence would not have changed the outcome and was therefore inadmissible; accordingly the default judgment stands and the appeal is dismissed with costs of $10,000 inclusive.

Citation
2022 ONCA 347
Parties
Plaintiff (respondent): Flex Park Inc.; Defendant (appellant): Ida Covello
Court
Court of Appeal for Ontario
Jurisdiction
Canada
Judgment Date
3 May 2022
Procedural Posture
Civil Collection (mortgage) / Appeal From Motion to Set Aside Default Judgment (court of Appeal)
Outcome
Appeal dismissed
Legal Topics
Default Judgment, Set Aside, Fraud Allegation, Fresh Evidence, Costs, Unconscionability
Source Language
English
Civil Property Procedure Mortgage Default Judgment Set Aside Fraud Allegation Fresh Evidence +2 more

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Parties

Flex Park Inc.

Plaintiff (respondent)

Ida Covello

Defendant (appellant)

Procedural Posture

Civil Collection (mortgage) / Appeal From Motion to Set Aside Default Judgment (court of Appeal)

Legal Issues

  1. 1 Whether the motion judge erred in refusing to set aside the default judgment
  2. 2 Whether alleged fraud by a law clerk tainted the appellant's mortgage transaction
  3. 3 Whether fresh evidence should be admitted on appeal

Ratio Decidendi

The motion judge correctly applied the test for setting aside a default judgment and found no evidence that the law clerk's fraudulent actions affected the appellant's mortgage or its enforceability; the fresh evidence would not have changed the outcome and was therefore inadmissible; accordingly the default judgment stands and the appeal is dismissed with costs of $10,000 inclusive.

Court Disposition

Appeal dismissed

Orders

  • Appeal dismissed
  • Fresh evidence not admitted