Community Trust Company v. He

Community Trust Company v. He

The motion judge correctly applied the Zeifman test and the appellant failed to provide a reasonable explanation for the prolonged default, produced no draft defence with an air of reality, and could not show the contractual interest rate was unlawful; therefore the default judgment should not be set aside and the...

Source-derived case information.

Citation
2026 ONCA 261
Parties
Plaintiff (respondent): Community Trust Company; Defendant (appellant): Yi He
Court
Court of Appeal for Ontario
Jurisdiction
Canada
Judgment Date
10 April 2026
Procedural Posture
Civil Collection/mortgage Enforcement / Appeal From Denial of Motion to Set Aside Default Judgment
Outcome
Appeal dismissed; order denying motion to set aside default judgment affirmed
Legal Topics
Setting Aside Default Judgment, Zeifman Test, Mortgage Enforcement, Contractual Interest Rates, Commercial Reasonableness
Source Language
english
Civil Mortgage Procedure Appeals Commercial Law Setting Aside Default Judgment Zeifman Test Mortgage Enforcement +2 more

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Parties

Community Trust Company

Plaintiff (respondent)

Yi He

Defendant (appellant)

Procedural Posture

Civil Collection/mortgage Enforcement / Appeal From Denial of Motion to Set Aside Default Judgment

Legal Issues

  1. 1 Whether the default judgment should be set aside under the Zeifman test
  2. 2 Whether the appellant has a meritorious defence with an air of reality
  3. 3 Whether the appellant acted with reasonable dispatch to bring a defence

Ratio Decidendi

The motion judge correctly applied the Zeifman test and the appellant failed to provide a reasonable explanation for the prolonged default, produced no draft defence with an air of reality, and could not show the contractual interest rate was unlawful; therefore the default judgment should not be set aside and the appeal is dismissed.

Court Disposition

Appeal dismissed; order denying motion to set aside default judgment affirmed

Orders

  • Appeal dismissed
  • Order of the Superior Court of Justice dated May 13, 2025 denying motion to set aside default judgment affirmed