Rakesh Dhunna | Plaintiff
And
Stephen Brown | Defendant

Before:
The Honourable Justice Stephens

From:

Reasons for Judgment of the Supreme Court of British Columbia, dated March 25, 2026 (Dhunna v. Brown, 2026 BCSC 517, Vancouver Registry, Docket S218212).

Summary:

The defendant applied to set aside a default judgment entered in November 2021 and a subsequent damages order made in July 2023 in the amount of $4,262,369.40, arising from a failed $18 million residential purchase transaction. The plaintiff alleged the defendant had wrongfully breached and repudiated the purchase agreement by failing to complete the transaction.

Although the Court found that the defendant had severely delayed in bringing the application and did not act as soon as reasonably possible, it also found that he had not deliberately or wilfully failed to file a response to civil claim when default judgment was first taken, and that he had advanced defences worthy of investigation, including whether subject clauses had in fact been waived and whether the plaintiff failed to mitigate damages.

Balancing those factors, the Court held that the interests of justice favoured setting aside both the default judgment and the damages order, and granted the defendant leave to file a response to civil claim within 30 days. Counsel for the defendant was Suzanne Solsona.