Court of Queen ’ s Bench of Alberta Citation: Bank of Montreal v. Cochrane, 2011 ABQB 741 Date: 20111129 Docket: 0901 07347 Registry: Calgary Between: Bank of Montreal Plaintiff - and - Kenneth Robert Cochrane et al Defendants _______________________________________________________ Memorandum of Decision of the Honourable Madam Justice C.A. Kent _______________________________________________________ [ 1 ] This is an application to open up default judgment by Maza Investment Group Inc.

Dealing with the three part test on such an application, the first question is whether there was a reasonable explanation why no Statement of Defence was filed. I find that there is. The claim was served on the registered office, but it is probable that the lawyer did not notify the principals of Maza. [ 2 ] The second is whether there was a delay in bringing this motion to set aside. While it has taken some time to have this application argued, I cannot say that it was solely as a result of delay on the part of Maza. Rather it was a combination of some delay by Maza plus scheduling demands of the court.

[ 3 ] Third, is there a meritorious defence? In companion reasons, I set aside the attachment order. There is a defence which may or may not be successful. [ 4 ] The noting in default is set aside so long as the following conditions are met. First, Maza will pay BMO’s thrown away costs. [ 5 ] BMO argues that if I permit Maza to file a Statement of Defence, I should order some security for costs since Maza has admitted that it has no assets. If BMO is ultimately successful, it will be unable to collect costs or recover its judgment. It seeks security in the amount of $200,000.

Statutory declarations were filed as a result of the attachment orders by Messrs. Abdallah and Zohiri and Maza Investment Group. They disclose that Maza has no assets. Accordingly, security for costs is appropriate particularly since the activities of this group remain suspicious. The second condition is that Maza will deposit $100,000 to the Court. Heard on the 18 th day of October, 2011. Dated at Calgary, Alberta this 29 th day of November, 2011. C.A. Kent J.C.Q.B.A. Appearances: Munaf Mohamed Bennett Jones LLP

for the Bank of Montreal Clive O. Llewellyn Llewllyn Law for Mohamed Zohiri, Ahmed Abdallah, Maza Investment Group and Ali Hammoudi