A motion to set aside default judgment asks the court to undo a judgment entered after a party was noted in default for failing to defend in time. In many cases, the moving party also asks the court to set aside the noting in default itself and grant leave to file a defence. In Superior Court, Rule 19.08 provides that a judgment against a defendant noted in default may be set aside or varied by the court on such terms as are just. In Small Claims Court, Rule 11.06 similarly allows the court, on motion, to set aside the noting of default or the entry of default judgment on such terms as are just.

This remedy is discretionary. The court does not set aside a default judgment automatically just because the defendant asks. The motion must be supported by evidence and must show why reopening the case is fair.

A motion to set aside default judgment commonly arises where the defendant was never properly served, did not actually receive the claim in time, misunderstood the next procedural step, was affected by a genuine administrative or legal error, or has a real defence that deserves to be heard on the merits. Ontario practice guidance and commentary emphasize that the court will look closely at the surrounding circumstances, including the explanation for the default, the timing of the motion, any prejudice to the plaintiff, and whether the proposed defence has merit.

Under Rule 19.08 of the Rules of Civil Procedure, the Superior Court may set aside or vary a default judgment on terms that are just. Ontario practice materials describe several recurring factors that usually matter on these motions: whether the defendant moved promptly after learning of the judgment, whether there is a satisfactory explanation for the default, whether the plaintiff would suffer non-compensable prejudice if the judgment were reopened, and whether the defendant has shown a genuine defence on the merits.

The existence of a real defence is especially important. The moving party generally needs more than a bare denial. The affidavit should set out facts showing that there is a genuine issue for trial. Ontario practice commentary notes that it is usually not enough to simply say there is a good defence or to attach a draft statement of defence without meaningful supporting evidence. The court wants to see substance.

Delay also matters. If a defendant waits too long after learning of the default judgment, the court may be less willing to exercise its discretion. That said, commentary in Ontario practice materials notes that delay by itself is not always fatal if it is reasonably explained in the circumstances.

In Small Claims Court, Rule 11.06 allows the court to set aside the noting in default or the entry of default judgment on such terms as are just. The Small Claims Court guides also state that a defendant should bring the motion as soon as reasonably possible in the circumstances. If the default is set aside and a defence is filed, the matter can then proceed through the usual Small Claims Court process, including settlement conference and trial if needed.

The Small Claims Court rules also provide another practical option in some cases: if all parties consent, the clerk may set aside the noting in default or default judgment without the need for a contested motion. That can be useful where both sides agree the matter should be reopened.

Although every case turns on its facts, courts typically focus on a familiar group of issues. They want to know why the default happened, whether the moving party acted promptly after discovering it, whether reopening the case would cause real prejudice to the plaintiff, and whether the defendant has a genuine arguable defence worth hearing. Ontario creditor-remedies commentary describes the defence requirement as crucial and warns that unsupported or purely conclusory material is usually not enough.

Service problems can also be central. If the claim was not properly served, or if the defendant did not receive it in time to respond, that may significantly strengthen the motion. In both Superior Court and Small Claims Court, defective service can be a major reason to set aside the default and allow the matter to proceed properly.

A strong motion usually depends on a careful affidavit. The evidence should typically explain when and how the defendant first learned of the claim or judgment, why no defence was delivered in time, what steps were taken once the judgment was discovered, and what defence is proposed. In Superior Court matters, practice materials also point to precedent forms for a notice of motion, supporting affidavit, and order setting aside default judgment, which underscores how important it is to present the motion in a clear and organized way.

Where appropriate, the motion materials may also include a draft statement of defence, documents showing improper service, email records, medical or travel evidence, corporate filing issues, or other materials explaining why the default occurred and why the case should be reopened.

Even where the court sets aside a default judgment, it may impose terms. Both the Superior Court and Small Claims Court rules expressly allow relief “on such terms as are just.” Those terms may include filing the defence by a fixed deadline, paying costs, producing documents, or complying with other case-management directions.

That means these motions are not only about whether the judgment should be reopened. They are also about controlling the conditions under which the case returns to the ordinary litigation stream.

Time matters in default judgment cases. The longer a defendant waits, the harder it often becomes to explain the delay and prevent enforcement prejudice. Ontario’s Small Claims Court guidance specifically says that a defendant should move to set aside the default as soon as reasonably possible. In Superior Court practice as well, unexplained delay can weaken the request for discretionary relief.

A prompt response may also help before garnishment, writ enforcement, examinations in aid of execution, or other collection steps begin.