David Marcovitch

The defendants moved to amend their statement of defence and for an order requiring the plaintiff to post further security for costs.

The plaintiff, who claimed to be impecunious, had previously been ordered to post a modest amount of security.

The defendants discovered that the plaintiff had entered into an assignment agreement with a paralegal corporation to fund the litigation in exchange for 15% of any recovery.

The court allowed the amendments to the statement of defence.

The court also found that the plaintiff failed to disclose the funding agreement on the initial motion, breaching the duty of candour required when pleading impecuniosity.

Applying the principle of proportionality, the court ordered the plaintiff to post further security for costs in staged amounts.