In Ontario, if a corporate defendant fails to file a Statement of Defence within 20 days, you can seek a default judgment. While noting a business in default is quick, obtaining the actual judgment can take anywhere from a few weeks for a fixed debt to several months if a judge must review the damages.
When you sue a business in Ontario, you expect them to fight back or try to settle the dispute. However, sometimes a corporate defendant simply ignores the lawsuit entirely, hoping it will just go away. This happens frequently with smaller companies in Toronto, Ottawa, or Mississauga that may be struggling financially or lack proper legal guidance. 💼 If the business fails to respond, the law does not force you to wait forever to get your money.
Under the Ontario Rules of Civil Procedure, you have the right to ask the court for a default judgment when a defendant remains silent. This is a powerful legal tool that allows you to win your case automatically because the other side failed to show up. 📋 However, the court system still requires you to follow a very strict procedural path to prove that the business was properly notified before they will hand over a binding judgment.
Step-by-Step Process in Ontario for Default Judgments
Securing a default judgment is a methodical process that leaves no room for administrative errors. Generally, you or your civil litigation lawyer must follow these exact steps at the Superior Court of Justice to successfully win your uncontested case. 📝
Step 1: Issue and Serve the Statement of Claim
The lawsuit officially begins when your lawyer files a Statement of Claim with the court and serves it to the defendant. Under Ontario law, serving a corporation usually means leaving the document with an officer, director, or managing agent of the business. 📪 You must use a professional process server to ensure the delivery is legally valid and officially documented.
Step 2: Wait the Statutory 20-Day Period
Once the business is served in Ontario, they are legally granted exactly 20 days to file and serve their Statement of Defence. If the business is located outside of Ontario but within Canada, they get 40 days, and if they are international, they get 60 days. ⌛ During this waiting period, you cannot take any further legal action against them.
Step 3: File an Affidavit of Service
To prove to the court that the business actually knew about the lawsuit, your process server must swear an Affidavit of Service. This is a sworn legal document detailing exactly who received the lawsuit, at what address, and on what date. 🗃 Without this document, the court will refuse to proceed, as they must protect defendants from secret lawsuits.
Step 4: Requisition to Note in Default
If day 21 arrives and no defence has been filed, your lawyer will file a “Requisition to Note in Default” with the court registrar. Once the registrar signs this, the business is officially locked out of the lawsuit. 🔒 They are deemed to admit the truth of all allegations made in your Statement of Claim, and they can no longer file a defence without special permission from a judge.
Step 5: Request the Default Judgment
How you get the final judgment depends on what you are asking for. If you are suing for a “liquidated claim” (a specific, mathematical debt like an unpaid $60,000 CAD invoice), the registrar can sign the judgment directly. 💵 If you are suing for an “unliquidated claim” (like general damages for a breached contract), your lawyer must schedule a motion before a judge to prove exactly how much money you lost.
Step 6: Enforce the Judgment
Getting a piece of paper from the judge is only half the battle; you still need to collect the money. Once you have the default judgment, your law firm can take enforcement steps. 🔑 This includes freezing the business’s bank accounts, placing a lien on their commercial real estate, or sending the local Sheriff to seize their corporate assets.
How Much Does it Cost in Ontario?
While an uncontested lawsuit is much cheaper than a full trial, there are still mandatory court fees and legal expenses involved. Below is a breakdown of the typical costs you might expect.
| Cost Category | Estimated Cost (CAD) | Details |
|---|---|---|
| Court Issuance Fee | $243 | The standard government fee to issue a Statement of Claim in the Ontario Superior Court. |
| Process Server | $100 – $250 | Hiring a professional to hand-deliver the lawsuit to the corporate defendant and swear the affidavit. |
| Lawyer Fees (Registrar Judgment) | $1,500 – $3,000 | Legal fees to draft the claim, note the business in default, and secure a quick administrative judgment. |
| Lawyer Fees (Motion to a Judge) | $3,000 – $5,000+ | If your damages are unliquidated, your lawyer must prepare motion records and argue before a judge. |
How Long Does the Process Take?
The initial timeline is very predictable, but court administrative backlogs can slow things down. You must wait the strict 20 days after serving the lawsuit before you can take any action. Once noted in default, getting a judgment signed by the registrar for a liquidated debt generally takes 2 to 4 weeks.
However, if you must appear before a judge to prove your unliquidated damages, the timeline extends significantly. 📅 Securing a motion date in a busy Ontario courthouse can take 3 to 6 months. Once the judge grants the order, you can immediately begin enforcement actions against the business’s bank accounts.
Frequently Asked Questions (FAQ)
Can the business overturn a default judgment?
Yes, but it is not easy. The business must file a motion to set aside the default judgment. They must prove they have a reasonable explanation for ignoring the lawsuit (like a medical emergency or never actually receiving the documents) and demonstrate that they have a strong, valid defence to your claims.
What is the difference between liquidated and unliquidated damages?
Liquidated damages are fixed, undeniable amounts, such as an unpaid commercial invoice for $60,000 CAD. Unliquidated damages require assessment, such as asking for $100,000 CAD for “loss of business reputation” where a judge must decide if that amount is fair and proven.
Does the court warn the business before granting the judgment?
No. Once the business is noted in default, they lose their right to receive any further notices about the lawsuit. You do not have to tell them when you are going to the judge to ask for the final default judgment.
What if they file a defence on day 25?
If you have not yet filed the paperwork to “note them in default,” the business is generally allowed to file their Statement of Defence late. This is why civil litigators race to the courthouse on day 21 to lock the defendant out of the process.
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