The defendants in two construction lien actions, Pier 27 and L Tower, brought motions seeking orders for the plaintiff, Yuanda Canada Enterprises Ltd., to post security for costs totaling over $1 million.
The court dismissed both motions, finding that the defendants failed to establish "good reason to believe" that the plaintiff had insufficient assets in Ontario to pay costs.
The court emphasized the high threshold for such motions, requiring indicia of insolvency or instability, and noted that the certified basic holdback owed to the plaintiff by the Pier 27 Defendants, exceeding the claimed security for costs, constituted a sufficient asset.
