What is the test for setting aside a judgment?

Section 37 permits a judgment debtor to make an application to set aside a judgment. The section reads as follows, (1) If there has been no appeal from a judgment pursuant to this Act, any party to the action may apply to the court for a summons to set aside the judgment and rehear the matter where: (a) the party applying to set aside the judgment did not appear at the trial; (b) the party has a reasonable excuse for not appearing; and (c) the party has a valid defence to the claim made against him or her. (2) On the return date of a summons issued pursuant to subsection (1), the judge may set aside the judgment on any terms as to costs that the judge considers appropriate and give any directions that the judge considers necessary respecting the rehearing of the matter. The section has been in effect since February 16, 1998 and so the cases that have been decided subsequent to that date are particularly applicable to this case although certain principles set out in earlier cases have relevance. The word “and” after subsection (b) of the section indicates the conjunctive nature of the requirements that must be met before a judgment can be set aside. This point has been made clear in the case of Gehring v. Prairie Co-operative Ltd.[1] Analysis