Legal Blog

Stay of Judgment Awaiting Counterclaim

Heliotrope Investment Corporation v. 1324789 Ontario Inc. 2021 Ont CA

When a plaintiff is able to obtain judgment on its claim and a counterclaim still awaits trial, then, under Rule 20.08, judges still have the discretion to stay enforcement of the judgment until the counterclaim has been decided. The Court of Appeal has decided to use a multi factor test when deciding whether to exercise that discretion. The five factors are: the merits of the counterclaim; the relationship between the judgment and the counterclaim; conduct of the defendant and its litigation strategy; prejudice to the parties; and whether the terms that may be imposed for the stay can mitigate the negative effects on the plaintiff of being unable to enforce its judgment.

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