Both the plaintiff and defendant brought motions for security for costs.
The plaintiff, Crossover Health Care Fund, LLC, sought security for costs against the defendant's counterclaim, arguing the defendant, Pivotal Therapeutics Inc., had insufficient assets and that significant aspects of the counterclaim were statute-barred.
The defendant, Pivotal Therapeutics Inc., sought security for costs against the plaintiff's main action, arguing the plaintiff was not ordinarily resident in Ontario.
The court granted both motions, ordering the defendant to post $80,000 in security for costs for its counterclaim and the plaintiff to post $45,000 in security for costs for its defence to the main action.
The court found the defendant's valuation of its assets, particularly intellectual property not owned by it, was insufficient to demonstrate solvency for a costs order.
The court also found that many aspects of the counterclaim appeared to be statute-barred under the Limitations Act, 2002, and did not have a real possibility of success.