Written by Ruzbeh Hosseini, a Toronto litigation lawyer and partner at Cambridge LLP
Last reviewed: July 2026
This article provides general information only and is not legal advice. The deadline and strategy in any lawsuit can depend on the documents served, the method and location of service, the court, and the specific facts.
Being served with a lawsuit in Ontario can feel stressful, especially if the claim is unexpected, exaggerated, or wrong. But ignoring the claim can create serious procedural and financial consequences.
If you do not defend a lawsuit in Ontario, the plaintiff may ask the court registrar to note you in default. Once that happens, you are generally deemed to admit the truth of the factual allegations in the statement of claim. You will lose the right to deliver a defence or take other steps in the action unless the plaintiff consents or the court gives permission.
After default is noted, the plaintiff may seek default judgment. Depending on the claim, judgment may be signed administratively or granted by a judge on a motion. A default judgment can include damages, legal costs, and interest. Once judgment is entered, the plaintiff can pursue enforcement steps such as garnishments, writs of seizure and sale and/or an examination in aid of execution.
How Long Do You Have to Defend a Lawsuit in Ontario?
The deadline to deliver a statement of defence in Ontario Superior Court actions depends on where the defendant was served with the statement of claim. Under Rule 18.01 of the Rules of Civil Procedure, the basic defence deadlines are:
| Where the defendant was served | Time to deliver a statement of defence |
| In Ontario | 20 days after service |
| Elsewhere in Canada or in the United States | 40 days after service |
| Outside Canada and the United States | 60 days after service |
A defendant who intends to defend may also deliver a Notice of Intent to Defend within the applicable defence period. This is not the defence itself. If delivered on time, it gives the defendant 10 additional days to deliver a statement of defence.
These deadlines matter because a defendant may deliver a defence at any time before being noted in default. After default is noted, the defendant will need the plaintiff’s consent or a court order setting aside the noting of default before taking further steps in the action. This can make the litigation process more expensive, more urgent, and less predictable.
| The defence deadlines, Notice of Intent to Defend, noting in default, default judgment, and setting-aside procedures discussed in this article are based on Ontario’s Rules of Civil Procedure, including Rule 18 and Rule 19. |
What Does “Noted in Default” Mean?
Being noted in default is a formal court step available to a plaintiff when a defendant has not delivered a statement of defence on time. The plaintiff files proof with the court that the statement of claim was served and asks the registrar to record the defendant in default (of the obligation to defend).
The consequences are serious. A defendant noted in default is generally deemed to admit the truth of the factual allegations in the statement of claim. For default purposes, the court will treat the pleaded facts as true unless the default is later set aside.
A defendant noted in default also loses the right to deliver a defence or take other steps in the action, except to move to set aside the noting in default or a judgment obtained because of the default. The defendant will also stop receiving notice of steps taken in the proceeding, which means the case will continue without the defendant being involved.
What Rights Can You Lose by Not Defending?
The statement of defence is where a defendant formally responds to the statement of claim. It tells the court which allegations are admitted, which are denied, what context is missing, and what legal defences may apply. Without a defence, the defendant’s version of events may never be put to the court for consideration.
A defendant in default will also lose the ordinary ability to participate in motions, discovery and trial. In commercial disputes, discovery can be especially important because it is where contracts, invoices, payment records, emails, corporate records, and admissions are tested.
Not defending is not a neutral strategy. It may mean giving up procedural tools that could help challenge liability, dispute damages, raise set-off, rely on limitation periods, involve an insurer or negotiate from a stronger position.
What Is a Default Judgment?
A default judgment is a final court order obtained after a defendant has been noted in default. It is a court document that grants the relief sought by the Plaintiff in the statement of claim.
The process of obtaining default judgment will depend on the type of claim. Some claims are for fixed or readily calculable amounts, such as unpaid invoices, loans, rent arrears, or contract debts. Default judgment for these types of claim can be obtained by from the court registrar without intervention by a judge. Other claims require a judge to assess damages, such as fraud, negligence, defamation, personal injury or complex business-loss claims.
A default judgment should not be treated as less serious because it was obtained without a contested trial. Once entered, it is still a court judgment. It can expose your bank accounts, receivables, business operations, property and credit. It will also lower your settlement leverage.
Liquidated Claims: When Judgment May Be Signed Administratively
A liquidated claim is a claim for a fixed or readily calculable amount of money. Common examples include unpaid invoices, unpaid loans, promissory notes, rent arrears, contract balances, guarantees and other debts where the amount can be calculated from relevant and available documents.
If the defendant is noted in default in a liquidated claim, the plaintiff may be able to ask the registrar to sign default judgment without a full hearing. The plaintiff must still file the required paperwork and show that the claim fits within the rules, but the process can move faster than many defendants expect.
This is especially important in debt collection cases. A defendant may have defences related to payments, credits, set-offs, interest, the identity of the debtor, the scope of a guarantee or whether the amount claimed is actually owing. Those issues must be raised before default steps are taken. Waiting until after default judgment may make the dispute mor complicated and more expensive.
Unliquidated Claims: When the Court Must Assess Damages
Unliquidated claims are claims where the amount of damages is not fixed in advance. The court may need evidence to determine the value of the loss. Examples include personal injury, professional negligence, fraud, defamation, and complex commercial damages.
For example, if a plaintiff alleges injury, lost income, reputational harm, fraud-related loss, or business interruption, the amount of damages may not be obvious from the statement of claim alone. The court may need affidavit evidence, documents or other proof before deciding how much (if anything) should be awarded.
Default still creates a major problem for the defendant. Liability may be treated as conceded because the pleaded facts are deemed admitted. The remaining hearing may focus mainly on the amount of damages and any legal issues the court still needs to decide. By that point, the defendant may be too late to contest the facts that matter most.
Costs, Interest and Enforcement After Default Judgment
Default can expose a defendant to more than the original debt or damages claim. If the plaintiff obtains judgment, the judgment may include legal costs for the steps taken to obtain it. Those costs may not cover every dollar spent by the plaintiff, but they can still increase the judgment amount.
Interest may also be added. Depending on the claim, this may include prejudgment interest and postjudgment interest. Often, prejudgment and postjudgment interest is at a contractual rate. If a written agreement sets a specific interest rate, that agreed-upon rate will likely apply. If there is no agreed rate, statutory interest will apply.
Once judgment is obtained, the plaintiff will be entitled to commence enforcement of the judgment. Enforcement may include garnishment of wages, bank accounts or debts owing to the defendant. It may also include writs of seizure and sale against personal property or land, or an examination in aid of execution where the judgment debtor is questioned about income, assets, and financial circumstances.
| Potential consequence | What it may involve |
| Legal costs | The plaintiff may ask the court to include some of the legal costs incurred to obtain judgment. |
| Interest | The judgment may include prejudgment interest, postjudgment interest, or contractual interest if an agreement provides for it. |
| Garnishment | Money may be taken from wages, bank accounts, or debts owed to the defendant. |
| Writs of seizure and sale | Enforcement may be directed against certain personal property or land. |
| Examination in aid of execution | The judgment debtor may be questioned about income, assets, debts, and financial circumstances. |
Can You Set Aside a Noting in Default or Default Judgment?
Sometimes, yes. A defendant may ask the plaintiff to consent to setting aside the noting in default or default judgment. If the plaintiff does not consent, the defendant will have to bring a motion asking the court to set it aside.
Asking the court to set aside a noting in default or default judgment is not a mere formality. The defendant will be required to present evidence showing why the defence was not delivered on time, how quickly the defendant acted after learning of the default, whether there is a possible defence on the merits and that the setting aside the default would not prejudice the plaintiff. The facts required to be shown will depend on the history of the case and the order being requested.
The practical point is that delay can make the problem worse and potentially insurmountable. If you learn that you have been noted in default or that default judgment has already been entered, enforcement may begin, interest may continue to accrue and the court may question why you did not act sooner.
What Should You Do After Being Served With a Lawsuit in Ontario?
If you are served with a lawsuit in Ontario, start by recording the date, time, place, and method of service. Keep every document you received, including the statement of claim, notices, envelopes, emails, attachments and any proof of service.
Next, identify the court, claim number, parties, relief sought, and deadline to respond. Gather relevant contracts, invoices, payment records, corporate documents, emails, text messages, insurance policies and witness information. If the claim may be covered by insurance, notify the insurer immediately.
Then get legal advice well in advance of the expiry of the deadline. A Toronto commercial litigation lawyer can help assess whether to deliver a statement of defence, serve a Notice of Intent to Defend, challenge service, forum or jurisdiction, request further particulars of the claim, notify an insurer, explore settlement or bring another procedural motion. If the dispute involves a company, shareholder issue, contract debt, unpaid invoice or guarantee, an Ontario business litigation lawyer can help determine the right response strategy.
FAQ: Default, Defence Deadlines, and Lawsuits in Ontario
Does Ignoring a Lawsuit Mean I Automatically Lose?
Not immediately. But ignoring a lawsuit can put you on the path to losing by default. If you do not deliver a defence on time, the plaintiff may have you noted in default and then seek default judgment. Once judgment is entered, enforcement steps can follow.
Can I File a Defence Late?
You may be able to deliver a defence late if you have not yet been noted in default. After default is noted, you generally need the plaintiff’s consent or the court’s permission before delivering a defence or taking other steps in the action.
What Is the Difference Between Noting in Default and Default Judgment?
Noting in default records that the defendant failed to defend on time and triggers procedural consequences, including deemed admissions of the pleaded facts. Default judgment is the judgment the plaintiff may seek after the defendant has been noted in default.
What if I Were Never Properly Served?
Improper service may be a serious issue, but you should not ignore the claim once you know about it. A lawyer can assess whether to challenge service, seek an extension, set aside default steps or respond in another way. The right step may depend on how you learned about the claim and what has already happened in the court file.
Can Default Judgment Be Enforced Against My Business?
Yes. If the judgment is against the business or another liable party, enforcement may target available assets, bank accounts, receivables, land or other property. Business defendants should treat lawsuit deadlines as urgent because default judgment can affect cash flow, operations, credit and settlement leverage.
Can a Debt Collection Lawyer Help If I Have Already Been Noted in Default?
Yes. If the claim involves unpaid invoices, loans, guarantees, contract balances or another debt, a debt collection lawyer or commercial litigation lawyer can assess whether default has been properly noted, whether default judgment has been entered, whether enforcement has started and whether there may be grounds to set aside the default or negotiate payment terms.
What Defendants Should Remember
Missing the defence deadline can quickly change the defendant’s position in the lawsuit. A defendant may be deemed to admit the factual allegations in the claim, lose the ordinary right to participate, face default judgment and pay costs and interest. Furthermore, a defendant will have to deal with enforcement steps, such as garnishment or writs of seizure and sale.
If you have been served with a statement of claim, do not assume the lawsuit will go away or that everything can be fixed later. Protecting your position usually starts with confirming the response deadline, preserving evidence, checking for insurance coverage and getting advice before default steps are taken.
Need Advice About a Lawsuit in Ontario?
Ruzbeh Hosseini assists clients with litigation strategy, commercial disputes, business litigation, debt claims, default judgment issues, and judgment enforcement in Ontario. If you have been served with a lawsuit in Ontario, have been noted in default, or need advice about responding to a statement of claim, contact Ruzbeh Hosseini to discuss your options.