The defendant general contractor brought a motion for security for costs against the plaintiff subcontractor in a construction dispute.
The plaintiff claimed $78,342.90 for unpaid work, while the defendant counterclaimed for $171,050.98 alleging deficient work and delay.
The court found there was good reason to believe the corporate plaintiff had insufficient assets in Ontario to pay a costs award, as its financial evidence was outdated and all assets were encumbered by a general security agreement.
Applying a holistic approach, the court concluded it was just to order security for costs and directed the plaintiff to post $10,000 for steps up to the completion of discoveries.