The defendants brought a motion for security for costs under Rule 56.01(1) of the Rules of Civil Procedure, seeking $300,000 in total for the main action and a related counterclaim.
The court dismissed the motion, finding that the plaintiffs had recently paid over $150,000 in outstanding costs orders, the related counterclaim did not seek the same relief, and the action was neither frivolous nor vexatious.
Furthermore, the defendants failed to establish that the plaintiffs had insufficient assets in Ontario to pay costs.