Indigenous Ecuadorian villagers obtained a US$9.5 billion judgment against Chevron Corporation in Ecuador for environmental pollution.
They sought to enforce the judgment in Ontario against Chevron Corporation and its seventh-level indirect subsidiary, Chevron Canada.
The motion judge granted an order requiring the plaintiffs to post security for costs of approximately $942,951 before the appeal could proceed.
The appellants moved to vary this order.
The Court of Appeal set aside the security for costs order, finding that the motion judge erred in principle by failing to conduct a holistic analysis of the justness of the order in all circumstances.
The court emphasized that security for costs orders must be just and should not be used as a litigation tactic to prevent cases from being heard on their merits.