Abbotsford, BC, Canada / Storyteller / Jun 26, 2026 /
The Supreme Court of British Columbia has set aside a default judgment of $251,934 against an elderly Vancouver couple and refused an application that would have forced the sale of their home of nearly 40 years. The couple was represented by Legalbird civil litigation lawyers Kawal Atwal and Benti Atwal. Legalbird is a British Columbia law firm serving clients in Abbotsford, Surrey, Vancouver, and Delta.
In reasons for judgment released June 2, 2026, in Prasad v. Ranga, 2026 BCSC 1009, the Honourable Mr. Justice Milman of the BC Supreme Court granted the defendants’ application to set aside the default judgment and the damages order made against them, and dismissed the plaintiff’s competing application to sell their East Vancouver property to satisfy the judgment.
A Vulnerable Couple Facing the Loss of Their Home
The defendants, a retired couple in their late 60s and early 70s with serious health conditions and limited ability to read or understand English, had purchased their Vancouver home in 1986 and lived there ever since. A default judgment was entered against them in 2024 in a debt action they say they never had a fair opportunity to defend.
The Court accepted evidence that the couple had been misled by their estranged son, who told them the litigation against them would be halted while one of the defendants was hospitalized and gravely ill. The judgment notes that the son told his mother it was he — not the named plaintiff — who was behind the lawsuit, and that he was using the plaintiff as an intermediary. The Court also drew an adverse inference from the plaintiff’s failure to provide any evidence from the son to contradict these assertions.
Justice Milman concluded that allowing the default judgment and damages order to stand “would amount to a miscarriage of justice.” He found that the defendants acted promptly once they realized they could no longer rely on the assurances given to them, and that they have a potentially meritorious defence they should be permitted to raise in the interests of justice.
Why This Decision Matters for BC Litigants
The decision is a significant example of how BC courts apply the Miracle Feeds test for setting aside default judgments, recently reaffirmed by the BC Court of Appeal in 1163499 B.C. Ltd. v. Yao, 2025 BCCA 443. It confirms that even where a default judgment has been quantified and enforcement steps are well underway — including a registrar’s recommendation that a home be sold — the court retains the power to set the judgment aside where letting it stand would result in a miscarriage of justice.
For homeowners and families facing a default judgment, debt claim, real estate dispute, or the threatened forced sale of property in British Columbia, the case demonstrates that experienced civil litigation counsel can intervene even at a late stage of proceedings.
About Legalbird
Legalbird is a British Columbia law firm with deep experience in civil litigation and family law, serving Abbotsford, Surrey, Vancouver, Delta, and surrounding communities. As Abbotsford civil litigation lawyers, the firm’s litigation team, led by Kawal Atwal, handles default judgment applications, debt and contract litigation, real estate dispute and foreclosure matters, and judgment enforcement proceedings before the BC Supreme Court. Benti Atwal leads the firm’s family law practice and offers services in Punjabi, French, and Gujarati, helping clients who face language barriers navigate the legal system with confidence.
Legalbird offers a free 30-minute consultation for individuals and businesses facing civil litigation matters in British Columbia. To learn more, visit legalbird.ca.
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Abbotsford, British Columbia V2S 3T4
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The full judgment in Prasad v. Ranga, 2026 BCSC 1009, is available through the Courts of British Columbia and CanLII.
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