Difference between revisions of "Small Claims Default Order (20:VII)"

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{{LSLAP Manual TOC|expanded = smallclaims}}
 
{{LSLAP Manual TOC|expanded = smallclaims}}
 
== A. Civil Resolution Tribunal ==
 
== 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 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
  
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If the party in default seeks to cancel the default order, they  may request the cancellation of a default order by
 
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,  
+
* 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,
+
* providing a completed Dispute Response Form if one has not already been provided to the tribunal,
c) providing evidence to support their request,  
+
* providing evidence to support their request,  
d) paying the required fee, and
+
* paying the required fee, and
e) following any other directions provided by the tribunal.
+
* 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 tribunal will consider whether the reason for default was beyond the control of the party making the request (illness, accident, etc.), whether the party was acting in good faith, the evidence the party submits, and whether the Dispute Response Form shows a defence worth investigating (See [[Responding_to_a_Small_Claim_(20:VI)|Section VI.D: Defences]]).
+
The requesting party has the burden to provide sufficient evidence on the factors above (see '''Section VI.D: Defences''').
 +
 
 +
If a party seeks to object to the Tribunal’s small claims decision, then they must submit a Notice of Objection Form to the Tribunal and pay the required fee within 28 days of receiving the Notice of Final Decision (''Civil Resolution Tribunal Rules (effective May 1, 2021)'', Rule 11.1(1)). However, if the party was in default or non-compliant at the time the decision was rendered, then that party cannot submit a Notice of Objection (''Civil Resolution Tribunal Rules (effective May 1, 2021)'', Rule 11.1(2)).  
  
 
== B. Small Claims Court ==
 
== 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.  
 
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.  
+
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.  
 
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 (Rules 7.2(25), 7.3(40), and 7.4(34). If the defendant does not attend a settlement conference (Rule 7(17)), trial conference (Rule 7.5(17)), or trial (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.  
+
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 ===
 
=== 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 (Rule 17(10)).  
+
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 (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.
+
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)).
  
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 (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 (Rule 6(5)). Once a hearing has been set, the defendant cannot file a Reply without a judge’s permission (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 (Rule 6(6)). A defendant who has not filed a reply is not entitled to notice of the hearing date (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)).
  
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 (Rule 6(9)).
+
=== 2. Setting Aside Default Orders and Reinstating Claims ===
  
=== 2. Setting Aside Default Orders and Reinstating Claims ===
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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:
  
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 (Rules 16(6)(j) and 17(2)) and file a Reply (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 (See Rule 17(2)(b); ''Miracle Feeds v D. & H. Enterprises Ltd.'' (1979), 10 BCLR 58 (Co. Ct.) [''Miracle Feeds'']; ''[http://canlii.ca/t/gk0z0 Nichol v Nichol]'', 2015 BCCA 278):
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* a reasonable explanation for not filing a Reply (or failing to attend a mediation session, trial conference, or trial);
*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;
*a reasonable explanation of any delay in filing the application;
+
* the facts supporting the claim, counterclaim, or defence; and
*the facts supporting the claim, counterclaim, or defence; and
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* 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]; [http://canlii.ca/t/gk0z0 ''Nichol v Nichol'', 2015 BCCA 278]).
*why permitting the order would be in the interests of justice.  
 
  
The party in default must show that:  
+
The party in default must show that:
*the failure to file a Reply (or failure to attend a mediation session) was not wilful, deliberate or blameworthy;
 
*the application to set aside the default order was made as soon as reasonably possible after obtaining knowledge of the default order (see ''[http://canlii.ca/t/23whc Camnex Marketing Inc. v Aberdeen Financial Group]'', 2009 BCSC 763 (CanLII));
 
*if there has been a delay in applying to set aside the default order, an explanation for the delay; and
 
*if the party in default is the defendant, there is a defence that is not bound to fail.
 
(See ''Miracle Feeds''; ''[http://canlii.ca/t/1zt5x Hubbard v Acheson]'', 2008 BCSC 970 (CanLII); ''[http://canlii.ca/t/20rz1 McEvoy v McEachnie]'', 2008 BCSC 1273 (CanLII); ''[http://canlii.ca/t/213m6 Anderson v T.D. Bank]'', 1986 CanLII 897 (BC CA); ''[http://canlii.ca/t/24c11 Doyle v Lunny Design and Production Group Inc.]'', 2009 BCSC 925 (CanLII); and ''[http://canlii.ca/t/1d43b Innovest Development Corp. (Receiver of) v Lim]'', 1999 CanLII 5356 (BCSC))
 
  
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.  
+
* the failure to file a Reply (or failure to attend a mediation session) was not wilful, deliberate or blameworthy ''(Miracle Feeds'', supra; [http://canlii.ca/t/1zt5x ''Hubbard v Acheson'', 2008 BCSC 970]; [http://canlii.ca/t/20rz1 ''McEvoy v McEachnie'', 2008 BCSC 1273]; [http://canlii.ca/t/213m6 ''Anderson v T.D. Bank'', 70 BCLR 267 (BC CA)]; [http://canlii.ca/t/24c11 ''Doyle v Lunny Design and Production Group Inc.'', 2009 BCSC 925]; and [http://canlii.ca/t/1d43b ''Innovest Development Corp. (Receiver of) v Lim'', 1999 CanLII 5356 (BCSC)]);
 +
* the application to set aside the default order was made as soon as reasonably possible after obtaining knowledge of the default order ([http://canlii.ca/t/23whc ''Camnex Marketing Inc. v Aberdeen Financial Group'', 2009 BCSC 763]);
 +
* if there has been a delay in applying to set aside the default order, an explanation for the delay; and
 +
* if the party in default is the defendant, there is a defence that is not bound to fail.
  
If the default order is cancelled, 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 travelling expenses, and lost wages that were incurred only as a result of the cancellation.
+
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.
  
 
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Latest revision as of 10:33, 12 August 2021

This information applies to British Columbia, Canada. Last reviewed for legal accuracy by the Law Students' Legal Advice Program on August 6, 2021.



A. Civil Resolution Tribunal[edit]

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

  • 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,
  • if the applicant served the Dispute Notice, providing a completed Proof of Notice Form, and
  • paying the required fee to request a default decision and order.

However, 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[edit]

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

  • completing and submitting the Request for Cancellation of Final Decision or Dismissal Form,
  • providing a completed Dispute Response Form if one has not already been provided to the tribunal,
  • providing evidence to support their request,
  • paying the required fee, and
  • 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).

If a party seeks to object to the Tribunal’s small claims decision, then they must submit a Notice of Objection Form to the Tribunal and pay the required fee within 28 days of receiving the Notice of Final Decision (Civil Resolution Tribunal Rules (effective May 1, 2021), Rule 11.1(1)). However, if the party was in default or non-compliant at the time the decision was rendered, then that party cannot submit a Notice of Objection (Civil Resolution Tribunal Rules (effective May 1, 2021), Rule 11.1(2)).

B. Small Claims Court[edit]

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[edit]

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[edit]

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.

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