The ruling, which caught Mulroney's lawyers off guard, came Thursday in a default judgment by the Ontario Superior Court of Justice.

The motion being argued today in a Toronto courtroom says the judgment was made in the face of a pending motion that challenged the Ontario court's jurisdiction.

In the motion, Mulroney's lawyers argue their client successfully met the deadline to respond to a lawsuit filed by Schreiber.

The motion argues Mulroney can't be found in default without an express court order delivered with proper notice to his lawyers.

Schreiber sued the former prime minister to recoup $300,000 in cash the businessman says he handed to Mulroney over three meetings in hotel rooms in New York and Montreal in 1993 and 1994.