This was an Appeal by Secure Energy Services Inc. (Secure) challenging the Applications Judge’s Decision to set aside the Noting in Default against Lone Star Pipe & Supply LLC (Lone Star). The Court noted its discretion under Rule 9.15(3) to set aside default judgment when the defendant presents an arguable defence, a reasonable excuse for non-defence, and acts promptly in seeking to set aside the default. Lone Star was found to have an arguable defence. It moved promptly. The issue in dispute was whether it had a reasonable excuse for failing to defend.

Lone Star claimed it lacked knowledge of the Amended Statement of Claim, arguing it failed to monitor its registered address in Texas. However, the evidence established that Lone Star’s corporate representatives, including its manager, were informed of the claim, as documents were received at Lone Star’s registered address and subsequently forwarded to the responsible parties.

The Court held that a mere failure to monitor mail does not amount to a reasonable excuse for default as litigants are expected to ensure that documents sent to their registered addresses are collected and reviewed. Citing Wilson v Bobbie, 2006 ABQB 22 and Hammond v Hammond, 2019 ABQB 522, the Court emphasized the importance of diligence. It found that Lone Star’s lack of action was not accidental or inadvertent, which are required to set aside a noting in default. A bare denial of notice was insufficient to establish a reasonable excuse in the circumstances.

The Appeal was allowed, and Secure was entitled to proceed with its claim. Secure was awarded costs on Column 5 of Schedule C.