The defendant brought a motion under Rule 56.07 for an order requiring the foreign plaintiff to post further security for costs.
The plaintiff conceded it had no assets in Ontario and was not impecunious, but argued it had a good chance of success on the merits in the context of an upcoming status hearing.
The court rejected the plaintiff's novel approach of assessing merits based on the status hearing rather than the action itself.
Finding the merits neutral and noting the plaintiff's failure to provide evidence regarding the action's merits, the court ordered the plaintiff to post an additional $35,400 in security for costs.