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Set-Off - Equitable

Ang v. Premium Staffing Ltd. (Ont CA, 2015)

In this case the Court of Appeal cited the elements required for equitable set-off to operate:
[8] The motion judge set out the relevant principles governing equitable set-off approved in Holt v. Telford, 1987 CanLII 18 (SCC), [1987] 2 S.C.R. 193, at p. 212:

1. the party relying on a set-off must show some equitable ground for being protected against his adversary’s demands;

2. the equitable ground must go to the very root of the plaintiff's claim before a set-off will be allowed;

3. a cross-claim must be so clearly connected with the demand of the plaintiff that it would be manifestly unjust to allow the plaintiff to enforce payment without taking into consideration the cross-claim;

4. the plaintiff's claim and the cross-claim need not arise out of the same contract; and

5. unliquidated claims are on the same footing as liquidated claims.
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