The defendants brought a motion for security for costs under Rule 56.01(1)(d) of the Rules of Civil Procedure on the basis that the corporate plaintiff had insufficient assets in Ontario to satisfy a potential costs award.
Evidence before the court showed that the plaintiff had outstanding judgments exceeding $1,000,000 and had filed no responding evidence demonstrating available assets.
The court held that once the defendants established the Rule 56.01(1)(d) threshold, the burden shifted to the plaintiff to prove sufficient assets, demonstrate impecuniosity, or show that its claim had a strong likelihood of success.
The plaintiff failed to meet any of these evidentiary burdens.
The court ordered the plaintiff to post $15,000 as security for costs and awarded the defendants partial indemnity costs of the motion.