Small Claims Default Order (20:VII)

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This information applies to British Columbia, Canada. Last reviewed for legal accuracy by the Law Students' Legal Advice Program on July 31, 2024.

A default order is a court or tribunal decision that is available to apply for when the opposing party fails to respond to the dispute notice or Notice of Claim by the required date. However, it is good practice to take extra measures to ensure the opposing party is truly electing not to respond. Even if a default order is granted, the party in default generally has a low bar to meet when applying to cancel it.

LSLAP Manual
LSLAP Manual
This page is from the
Law Students' Legal
Advice Program Manual.
See the full contents.
LSLAP Manual
Introduction
Chapters
20. Small Claims and the CRT
 · I. Introduction

 · II. Governing Legislation & Resources
 · III. Do You Have a Claim?
 · IV. Choosing the Proper Forum
 · V. Starting a Claim
 · VI. Responding to a Claim
 · VII. Default Order
 · VIII. How a Claim Proceeds
 · IX. Pre-Trial Applications
 · X. Mediation
 · XI. Settlement Conferences
 · XII. Trial & Pre-Trial Conferences
 · XIII. Trial Preparation
 · XIV. Trials
 · XV. Costs and Penalties
 · XVI. Appeals
 · XVII. Enforcement of a Judgement
 · XVIII. LSLAP Program Information
 · Appendix A: Registries
 · Appendix B: Demand Letter
 · Appendix C: Notice of Claim
 · Appendix D: Reply to Claim
 · Appendix E: Glossary
 · Appendix F: Limitation Periods
 · Appendix G: Causes of Action
 · Appendix H: Court Fees
 · Appendix I: Tribunal Fees
 · Appendix J: Settlement Conference
 · Appendix K: Payment Hearing

 · Appendix L: Appeal
v • d • e



A. Civil Resolution Tribunal

A party named as a respondent to a dispute who fails to respond to a properly delivered Dispute Notice by the date shown on the notice is in default. If every respondent is in default, an applicant may request a default decision and order from the tribunal by

(a) providing a completed Request for Default Decision and Order form together with supporting evidence of dispute-related expenses and the value of non-debt claims,
(b) if the applicant served the Dispute Notice, providing a completed Proof of Notice Form, and
(c) paying the required fee to request a default decision and order.

If the applicant’s claim is for something other than debt, they will need to provide evidence to support their requested remedy. An applicant must request a default decision within 21 days of being requested to do so, or the tribunal may dismiss or refuse to resolve the application.

1. Requesting Cancellation of a Default Order

If the party in default seeks to cancel the default order, they may request the cancellation of a default order by

(a) completing and submitting the Request for Cancellation of Final Decision or Dismissal Form,
(b) providing a completed Dispute Response Form if one has not already been provided to the tribunal,
(c) providing evidence to support their request,
(d) paying the required fee, and
(e) following any other directions provided by the tribunal.

The tribunal will consider several factors when deciding whether to cancel a default order. In reviewing the request for cancellation, a tribunal member will consider whether

  • the requesting party’s failure to respond to the Dispute Notice or to comply with the Act, rules, or regulations was willful or deliberate,
  • the request was made as soon as reasonably possible after the requesting party learned about the decision and order, and
  • the Dispute Response Form shows a defence that has merit or is at least worth investigating, in the case of a default decision (Civil Resolution Tribunal Rules (effective May 1, 2021), Rule 10.2).

The requesting party has the burden to provide sufficient evidence on the factors above (see Section VI.D: Defences).

B. Small Claims Court

If a defendant chooses not to defend a claim, the claimant wins by default. Evidence of the defendant’s choice not to defend the claim can include the defendant’s failure to file a Reply.

A claimant should not rush to the registry to file an Application for Default Order. Sometimes, a defendant may have a good reason for not filing a Reply on time and may have a defence to the claim that the court wishes to explore. In these circumstances, the court will set aside the default order and the claim will proceed in the ordinary course. A default order should only be used where the defendant has truly elected not to defend against the claim.

Where a defendant has not filed a Reply on time, it is a good idea to contact the defendant to determine why the Reply was not filed and to advise the defendant that a default order will be obtained if a Reply is not filed.

A default order can also be obtained if a defendant does not attend a mediation session (SCR, Rules 7.3(40)). If the defendant does not attend a settlement conference (SCR, Rule 7(17)), trial conference (SCR, Rule 7.5(17)), or trial (SCR, Rules 9.1(26), 9.2(11), and 10(9))., the judge or justice of the peace may grant a payment order instead of the claimant having to apply for a default order.

1. Requesting a Default Order

Unless the defendant was served outside of British Columbia or the court has otherwise ordered, a defendant has fourteen full days to file a Reply. This does not include the date the Notice of Claim was served and the date that the Application for Default Order is filed (SCR, Rule 17(10)).

To apply for a default order, the claimant must file Form 5 and pay a $25.00 fee. A certificate of service (Form 4) confirming service of the Notice of Claim and blank Reply form must also be in the file (SCR, Rule 6(3)). The claimant can ask the court to add the $25.00 fee plus reasonable expenses to the amount of the default judgment.

If the claim is for a specific amount of debt, the registrar will grant a default order for the amount claimed plus expenses and interest (SCR, Rule 6(4)). If the claim is for anything other than a specific amount of debt, the registrar will schedule a hearing before a judge (SCR, Rule 6(5)). Once a hearing has been set, the defendant cannot file a Reply without a judge’s permission (SCR, Rule 6(8)). If another defendant to the claim has filed a Reply and a date has been set for either a settlement conference, trial conference, or trial, the hearing will be held on that date (SCR, Rule 6(6)). A defendant who has not filed a reply is not entitled to notice of the hearing date (SCR, Rule 6(7)).

At a hearing, a default order is not automatic. The claimant must give evidence and produce documents to prove the amount owing as well as convince the court that the default order should be granted (SCR, Rule 6(9)).

2. Setting Aside Default Orders and Reinstating Claims

If a party obtains a default order or a hearing for assessment of damages is scheduled, the party in default can apply to a judge to set aside the default order (SCR, Rules 16(6)(j) and 17(2)) and file a Reply (SCR, Rule 16(6)(d)). The party in default must file the application as soon as possible upon learning of the default order and attach to the application an affidavit containing:

  • a reasonable explanation for not filing a Reply (or failing to attend a mediation session, trial conference, or trial);
  • a reasonable explanation of any delay in filing the application;
  • the facts supporting the claim, counterclaim, or defence; and
  • why permitting the order would be in the interests of justice (SCR, Rule 17(2)(b); Miracle Feeds v D. & H. Enterprises Ltd., [1979] 10 BCLR 58 (Co. Ct.) [Miracle Feeds]; Nichol v Nichol, 2015 BCCA 278).

The party in default must show that:

Where the party in default is a defendant who has not filed a Reply, the defendant should also bring copies of the Reply and be prepared to file them immediately if the judge grants permission.

If the default order is canceled, the party who obtained it may ask the court to award reasonable expenses that relate to the cancellation. These expenses may include the cost of filing the application for default order, significant traveling expenses, and lost wages that were incurred only as a result of the cancellation.


v • d • e
 
Introduction
 
Chapters 1-7
Criminal Law  · Youth Justice  · Family Law  · Victims  · Public Complaints · Human Rights  · Workers Compensation
Chapter One:
Criminal Law
Chapter Two:
Youth Justice
Chapter Three:
Family Law
Chapter Four:
Victims
Chapter Five:
Public Complaints
Chapter Six:
Human Rights
Chapter Seven:
Workers' Compensation
I. Introduction · II. Governing Legislation, Policy & Guidelines · III. Introduction to Compensation Claims for Injured Workers · IV. LSLAP's Role at the Initial Decision Level · V. Limitation Periods and Timing of Decisions · VI. Making a Claim · VII. The Claim Acceptance Process · VIII. Worker Status · IX. Disability and Causation · X. Time Limits and Procedures · XI. Claim Benefits · XII. Appeals · XIII. Health and Safety Regulations · XIV. Assessments of Employers · XV. The WCB Fair Practices Office · Appendix A: Abbreviations · Appendix B: List of Cases · Appendix C: Referrals · Appendix D: Resources · Appendix E: Small Claims Flow Chart · Appendix F: Checklist for Interviews · Appendix G: Checklist for Appeals · Appendix H: Sample Authorization Form
 
Chapters 8-14
Employment Insurance  · Employment Law  · Creditors and Debtors  · Consumer Protection  · Auto Insurance (ICBC)  · Motor Vehicle Law  · Mental Health Law
Chapter Eight:
Employment Insurance
Chapter Nine:
Employment Law
Chapter Ten:
Creditors' Remedies and Debtors' Assistance
Chapter Eleven:
Consumer Protection
Chapter Twelve:
Auto Insurance (ICBC)
Chapter Thirteen:
Motor Vehicle Law
Chapter Fourteen:
Mental Health Law
 
Chapters 15-23
Adult Guardianship and Substitute Decision-Making · Wills and Estates  · Citizenship  · Immigration  · Landlord and Tenant Rights  · Small Claims  · Welfare Law  · Strata Law  · Referrals
Chapter Fifteen:
Adult Guardianship and Substitute Decision-Making
Chapter Sixteen:
Wills and Estate Administration
Chapter Seventeen:
Citizenship
Chapter Eighteen:
Immigration Law
Chapter Nineteen:
Landlord and Tenant Law
Chapter Twenty:
Small Claims and the CRT
I. Introduction · II. Governing Legislation and Resources · III. Do You Have a Claim? · IV. Choosing the Proper Forum · V. Starting a Claim · VI. Responding to a Claim · VII. Default Order · VIII. How a Claim Proceeds · IX. Pre-Trial Applications · X. Mediation · XI. Settlement Conferences · XII. Trial/Pre-Trial Conferences · XIII. Trial Preparation · XIV. Trials · XV. Costs and Penalties · XVI. Appeals · XVII. Enforcement of a Judgement · XVIII. LSLAP Program Information · Appendix A: Registries · Appendix B: Demand Letter · Appendix C: Notice of Claim · Appendix D: Reply to Claim · Appendix E: Glossary · Appendix F: Limitation Periods · Appendix G: Causes of Action · Appendix H: Court Fees · Appendix I: Tribunal Fees · Appendix J: Settlement Conference · Appendix K: Payment Hearing · Appendix L: Appeal
Chapter Twenty One:
Welfare Law
Chapter Twenty Two:
Strata Law
Chapter Twenty Three:
Referrals
© Copyright 2024, The Greater Vancouver Law Students' Legal Advice Society.


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