CHAPTER 6

Review questions

1. Under what circumstances can you apply to sign default judgment?
2. Explain the difference between a liquidated claim and an unliquidated claim.
3. What documents must you prepare to sign default judgment?
4. Name the documentation to be used if you are preparing a default judgment that is not for a liquidated claim or demand.
5. What documents must you file with the court in order to sign default judgment?
6. Why is the registrar provided with a requisition for default judgment?
7. Suppose the defendant defaults on their defence but pays some money on account of the amount set out in the statement of claim. How does this affect the process of signing default judgment?
8. What determines the interest rate used for prejudgment and postjudgment interest?
9. How do you determine the amounts that go into the bill of costs?

10What are the significant differences between assessing costs and fixing costs?

11What do you need to tell the sheriff to do when you obtain a writ of seizure and sale to file with the sheriff's office?

1. Once the sheriff has the writ, can the sheriff collect more from the debtor than the face amount on the judgment, including accrued interest?

Case Study

Prepare documents to sign default judgment in the following case:

B. Head

Lawyer

LSO no. 17889Q 8701 - 365 Bay Street Toronto, ON M5A 1..

M E M O

DATE: April 26, Year 1

TO: U.R. Clerk

FROM: Bodley Head

RE: Default JudgmentRapacious Lenders v Ophelia Foot

We issued a claim against Ophelia Foot on March 23, Year 1. Foot had signed a promissory note to our client Rapacious Lenders Ltd for $60,000 on August 1, Year 0. The note was due on December 1, Year 0. It provided for interest at 12 percent per year from the time it was past due until payment. Interest has been claimed on this basis. The claim was thus for $60,000 plus interest on the overdue amount. On March 1, Year 1, Foot paid $2,000 on account, but nothing has been paid since. Foot was served with the statement of claim on March 24, Year 1; nothing has happened since.

Because Foot has not defended and the time for filing a defence has passed, please prepare the necessary documents to sign default judgment on April 28, Year 1. The original statement of claim and affidavit of service are in the file, together with a receipt for $60.00 (inclusive of HST) for service of the claim and a receipt for $229 from the court for the fee paid to issue the statement of claimand a receipt for the requisition for default judgment for $167.It is rumoured that Foot owns property in Toronto and Oshawa, so be sure to take that into account when requisitioning the writ of seizure and sale.

Review Questions

1. Under what circumstances can you apply to sign default judgment?
2. Explain the difference between a liquidated claim and an unliquidated claim.
3. What documents must you prepare to sign default judgment?
4. Name the documentation to be used if you are preparing a default judgment that is not for a liquidated claim or demand.
5. What documents must you file with the court in order to sign default judgment?
6. Why is the registrar provided with a requisition for default judgment?
7. Suppose the defendant defaults on their defence but pays some money on account of the amount set out in the statement of claim. How does this affect the process of signing default judgment?
8. How do you determine the amounts that go into the bill of costs?

10.What are the significant differences between assessing costs and fixing costs?

11What do you need to tell the sheriff to do when you obtain a writ of seizure and

sale to file with the sheriff's office?

1. Once the sheriff has the writ, can the sheriff collect more from the debtor than the face amount on the judgment, including accrued interest?

TEMPLATE

M E M O

DATE: April 26, Year 1

TO: U.R. Clerk

FROM: Bodley Head

RE: Default JudgmentRapacious Lenders v Ophelia Foot

We issued a claim against Ophelia Foot on March 23, Year 1. Foot had signed a promissory note to our client Rapacious Lenders Ltd for $60,000 on August 1, Year 0. The note was due on December 1, Year 0. It provided for interest at 12 percent per year from the time it was past due until payment. Interest has been claimed on this basis. The claim was thus for $60,000 plus interest on the overdue amount. On March 1, Year 1, Foot paid $2,000 on account, but nothing has been paid since. Foot was served with the statement of claim on March 24, Year 1; nothing has happened since.

Because Foot has not defended and the time for filing a defence has passed, please prepare the necessary documents to sign default judgment on April 28, Year 1. The original statement of claim and affidavit of service are in the file, together with a receipt for $60.00 (inclusive of HST) for service of the claim and a receipt for $229 from the court for the fee paid to issue the statement of claimand a receipt for the requisition for default judgment for $167.It is rumoured that Foot owns property in Toronto and Oshawa, so be sure to take that into account when requisitioning the writ of seizure and sale.

First determine how much is owing on the day you sign default judgment.

On these facts, interest begins to run the day after the debt is due (which would be December 2) at the rate of 12 percent per year.