Default Judgment: What to Watch Out For

Default Judgment in Provincial (Small Claims) Court: Deadlines and Consequences

Time moves quickly—particularly after you have been served with a Notice of Claim. Understanding your deadlines and obligations is critical.

Filing a Reply: The 14-Day Deadline

In Provincial (Small Claims) Court, a defendant typically has 14 days to file a Reply, depending on the method of service.

When calculating time:

• Do not count the day you were served.

• Do count the final day of the deadline period.

Fourteen days is often insufficient to gather evidence, assess your legal position, and prepare a thorough response. However, missing this deadline can have serious consequences.

What Happens If You Are Late?

If you fail to file your Reply within the required time, the claimant may apply for default judgment.

Default judgment is not a minor procedural setback. It allows the claimant to bypass the usual stages of small claims litigation and obtain judgment without a hearing. In effect, it is an immediate win for the claimant.

• If damages are not specified in the Notice of Claim, judgment may be granted with the amount to be assessed later.

• If damages are specified, judgment may be entered for that amount, with interest and allowable costs added. The claimant may then proceed with collection efforts.

At that point, your opportunity to defend the claim is significantly restricted.

While courts may set aside default judgment in certain circumstances, this outcome is never guaranteed.

Setting Aside Default Judgment: Key Case Law

Andrews v. Clay, 2018 BCCA 50 (CanLII)

This case examined the requirements for setting aside a default judgment obtained in Small Claims Court.

In this matter:

• Default judgment was entered after the defendant refused to attend a mandatory mediation.

• The defendant advised opposing counsel that he would not attend, asserting mediation was inappropriate.

• Opposing counsel warned that failure to attend could result in default judgment under the Small Claims Rules.

• The defendant maintained his refusal and indicated he would appeal any resulting judgment.

• Default judgment was entered the following day.

The matter proceeded through multiple levels of appeal, ultimately reaching the British Columbia Court of Appeal. The appeal was dismissed. The Court found that the defendant had willfully failed to comply with the procedural requirement to attend mediation.

The Governing Test: Miracle Feeds v. D. & H. Enterprises Ltd. (1979), 10 B.C.L.R. 58 (Co. Ct.)

In British Columbia, courts assessing whether to set aside a default judgment consistently rely on the test below established by Judge Hinds. To succeed, a defendant must demonstrate:

1. No Willful Default
   The failure to file a defence or comply with procedural requirements was not deliberate or intentional.

2. Prompt Application
   The application to set aside the judgment was made as soon as reasonably possible after learning of it, or there is a satisfactory explanation for any delay.

3. Meritorious Defence
   The defendant has a defence that is arguable and worthy of investigation.

4. Proper Evidence
   The above requirements are supported by affidavit evidence filed with the court.

This framework remains the foundation for most applications to set aside default judgment in British Columbia.

Practical Takeaway

Courts do not treat procedural deadlines lightly. A conscious decision to ignore court requirements—such as filing a Reply or attending mandatory mediation—can result in default judgment that may be difficult, costly, and sometimes impossible to reverse.

If you have been served with a claim, immediate action is essential. Early legal guidance can help protect your right to defend yourself and avoid the serious consequences of default judgment.