The defendants moved for security for costs against the corporate plaintiff under Rule 56.01(1), alleging insufficient assets in Ontario.
The plaintiff, while not claiming impecuniosity, argued that its financial state was caused by the defendants' alleged wrongful conduct and that its claim had a good chance of success.
The court found the merits of the case to be neutral for the purpose of the motion and determined that the plaintiff failed to demonstrate insufficient assets to post security.
The motion was granted, and the plaintiff was ordered to post security for incurred costs and future discovery costs.
Costs of the motion were awarded to the defendants.
