David A. Taub

Defendants brought motions for security for costs under Rule 56.01(1)(a) of the Rules of Civil Procedure against a foreign corporate plaintiff resident in Russia with no assets in Ontario.

The court confirmed the two‑stage framework for security for costs motions and held the defendants met the initial burden because the plaintiff was ordinarily resident outside Ontario.

The plaintiff failed to demonstrate impecuniosity or other circumstances making a security order unjust, despite having substantial funds abroad.

The court exercised its discretion to order staged security for costs, including amounts related to pending motions to discharge a certificate of pending litigation.

The court also granted a sealing order over a document containing non‑party investors’ financial information and awarded partial indemnity costs to the plaintiff for the confidentiality motion.

Following a motion in which the plaintiffs were completely successful, the court determined the appropriate costs award.

The court considered the defendants’ extensive submissions that went beyond the jurisdictional issues raised by the motion and addressed the merits of the case.

Applying the principles governing costs awards and recognizing the additional time and materials used by the defendants, the court held that costs somewhat above the partial indemnity scale were appropriate.

The plaintiffs were awarded a fixed all-inclusive costs amount payable within 30 days.