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

How Default Judgments Happen

A default judgment may be entered when a defendant doesn't file a Form 02 Reply within the 20-day deadline (or 30 days if served outside Yukon). The plaintiff applies, and the court can enter judgment without a trial. For unliquidated damages, a judge holds a separate hearing to determine the amount.

There are two types. For liquidated claims—fixed amounts like unpaid invoices or dishonoured cheques—the plaintiff files Form 13, and the registry clerk enters judgment immediately. For unliquidated claims—damages that need assessment, like defective workmanship or personal injury—the plaintiff files Form 14, which locks in liability but schedules a hearing for a judge to determine the amount.

Either way, the judgment is enforceable. The plaintiff can garnish your wages, attach your bank accounts, direct the Sheriff of Yukon to seize and sell your property, or register the judgment against your real estate through the Land Titles Office.

The Three-Part Test to Set It Aside

Setting aside a default judgment isn't automatic. You need to satisfy all three elements:

1. A reasonable excuse for missing the deadline. The court wants to know why you didn't file on time. Strong reasons include never actually receiving the served papers, a medical emergency or hospitalization, or proof that service was defective. Weak reasons: "I didn't think it was serious" or "I was busy."

2. An arguable defence on the merits. You must show through a sworn affidavit that you have a real defence to the claim—not just "I disagree." Concrete facts matter: the work was never completed, payment was already made, the amount is wrong, or the claim is against the wrong party.

3. Prompt action once you learned of the judgment. The longer you wait after discovering the default judgment, the harder this becomes. If you found out about it through a wage garnishment notice last week, apply immediately.

The Required Forms

To bring the application, you need:

• Form 08 Notice of Application — tells the court and the plaintiff what you're asking for (set aside the default judgment)
• Form 09 Affidavit — your sworn statement laying out why you missed the deadline, what your defence is, and when you learned about the judgment

File both at the court registry. The registry schedules a hearing before a judge, and you must serve copies on the plaintiff.

Request a Stay of Execution

Filing Form 08 does not automatically stop the plaintiff from enforcing the judgment. If there's an active garnishment or property seizure in progress, include a request for a stay of execution in your Form 08 application. If the judge grants the stay, deliver the order to the Sheriff of Yukon immediately so enforcement halts while your application is heard.

What Happens at the Hearing

The judge reviews your Form 09 Affidavit and hears from both sides. If the judge grants your application, the default judgment is set aside and you may file your Form 02 Reply. The claim can then proceed through the response and pre-trial process.

If the judge isn't satisfied—say your excuse is weak or your affidavit doesn't disclose a real defence—the default judgment stands and enforcement continues.

Avoiding Default in the First Place

The simplest way to avoid this entire process: file your Form 02 Reply and serve a copy on the plaintiff within the applicable deadline. If you need more time to prepare, you can apply for an extension before the deadline using Form 08 and Form 09.

There's also a narrow window after the deadline: a registry clerk will accept a late reply as long as the plaintiff hasn't yet filed for default judgment. It's a race condition you don't want to rely on, but it's there.

The Responding to a Small Claim in Yukon guide walks through both the deadline management system and the set-aside process, with templates for the affidavit and a checklist for the hearing.

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