Legal Blog

Setting Aside Registrar’s Dismissal – Delay & Prejudice

Arumugasamy v. Subaschandiran, 2026 ONCA 102

Lender brought an action against borrower seeking recovery of unpaid loans, which the borrower opposed while advancing a much larger counterclaim. Although the matter progressed through pleadings and discoveries and reached the trial list, the action was struck and later administratively dismissed because lender’s lawyer failed to attend court and “lost sight” of the file. The appeal court allowed the action to be restored, holding that the delay was attributable to counsel’s inadvertence rather than lender’s own conduct, particularly where lender repeatedly attempted to obtain updates from counsel. The court further concluded that the defendant suffered no real prejudice, especially given borrower’s failure to prosecute the counterclaim or respond to lender’s counsel.

Written by Jonathan Speigel, the founding partner of Speigel Nichols Fox LLP, leads the litigation and construction practices.