The defendants brought parallel motions for security for costs under Rule 56.01(1)(d) of the Rules of Civil Procedure against corporate and partnership plaintiffs who alleged losses exceeding $1,000,000 arising from a trading incident involving brokerage services and trading software.
The defendants argued that the plaintiffs lacked sufficient assets in Ontario to satisfy a potential costs award.
The court reviewed the financial circumstances of the plaintiffs and their principals and considered whether they could reasonably post security or obtain a letter of credit.
Finding that ordering security would effectively force abandonment of a claim that was not plainly devoid of merit, and that the plaintiffs were effectively impecunious, the court declined to require security for costs.
The motions were dismissed and costs awarded to the plaintiffs.
