The defendant brought a motion for security for costs against the three corporate plaintiffs under Rule 56.01(1)(d) and (e) of the Rules of Civil Procedure.
The court found that the plaintiffs failed to demonstrate they had sufficient exigible assets in Ontario to satisfy a costs award, as their primary assets were patents of uncertain value and marketability.
Furthermore, the plaintiffs failed to establish a good chance of success on the merits, particularly given adverse credibility findings against their principal in a related arbitration.
The motion was granted, and the plaintiffs were ordered to post security for costs in tranches.