How to Set Aside a Default Judgment in Manitoba Small Claims Court

You just found out there's a court judgment against you — maybe a garnishment hit your bank account, or a creditor letter arrived referencing a Certificate of Decision you never knew existed. In Manitoba's Small Claims Court, a claimant may request a default decision if a defendant doesn't file Form 76D or Form 76E within 20 calendar days of being served. The claimant must request it and prove service; a default decision is not automatic. But it's not necessarily permanent. Section 11 of The Court of King's Bench Small Claims Practices Act gives you a path to reopen the case.

The Set-Aside Process: Form 76I

You can't appeal a default judgment through the normal appeal route (Form 76K). Instead, you file Form 76I — Application to Set Aside Decision — at the court registry where the original claim was filed.

Filing fee: There is no base filing fee for Form 76I itself. But there's a mandatory catch.

Security deposit: You must pay $150 into the court at the time of filing. This is a security-for-costs deposit, payable only in guaranteed funds — cash, certified cheque, or money order. Debit and credit cards won't work for this specific payment. If the Court Officer grants your application, the $150 comes back. If they dismiss it, the money typically goes to the claimant.

Service deadline: Within 20 calendar days of filing Form 76I, you must serve a copy on every opposing party. Use personal service or registered mail, then file your Declaration of Service (Form 76B) with the tracking receipt.

The Three-Part Test

A Court Officer won't set aside a default just because you show up and ask. You have to satisfy three conditions at the hearing:

1. Reasonable explanation for the default. Why didn't you file on time? Acceptable reasons might include: you were out of the province and genuinely didn't receive the papers, you were hospitalized, the papers were served on someone else at your old address, or the service itself was defective. "I didn't think it was important" or "I was negotiating with the claimant" will likely fail.

2. Promptness. You need to show you filed Form 76I as soon as reasonably possible after discovering the default judgment. If you learned about the judgment in January and waited until June to file, the Court Officer will want to know why. The shorter the gap between discovery and filing, the stronger your case.

3. Justice of the case / meritorious defence. You must demonstrate that it's fair to let the case be heard on its merits. This usually means showing you have a genuine defence — not just a desire to delay. If you can point to facts, documents, or witnesses that support your side, this element is satisfied.

All three parts must be met. Nailing two out of three isn't enough.

What Happens at the Set-Aside Hearing

The Court Officer hears both sides — your reasons for the default and the claimant's reasons for keeping the judgment in place. If the application is granted, the default Certificate of Decision is nullified. The Court Officer returns your $150 deposit, sets a deadline for you to file Form 76D, and assigns a new hearing date. Your case starts over, essentially, at the defence-filing stage.

If the application is dismissed, the original judgment stands in full, and the $150 deposit is forfeited.

One important limitation: the decision at a set-aside hearing is final. Form 76I's own notice states that the Court Officer's or Judge's order cannot be appealed.

Enforcement Doesn't Automatically Stop

Filing Form 76I does not pause garnishments, bank seizures, or other enforcement actions that are already underway. If the claimant has started collecting on the default judgment, you need to separately ask the court registry for an urgent stay of execution while your set-aside application is pending. Don't assume the filing itself freezes everything — request the stay explicitly.

Acting Fast Matters

The longer you wait after discovering a default, the harder the promptness element becomes. If you've just learned about a default judgment — whether through a bank notification, a collections letter, or a credit report — your first move should be gathering the paperwork and heading to the registry.

The Manitoba Small Claims Response Guide covers the full set-aside procedure, including a checklist for Form 76I and guidance on documenting your reasons for the delay.

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