This motion sought an order for security for costs against the plaintiff, an Ontario corporation, in a $20 million lawyer's negligence claim.
The defendants argued that the plaintiff had insufficient assets in Ontario to pay costs, citing a previous decision where the same plaintiff was ordered to post security and its sole shareholder failed to establish impecuniosity.
The court applied the two-step inquiry under Rule 56.01, finding that the defendants had good reason to believe the plaintiff lacked sufficient assets.
The plaintiff failed to demonstrate ample assets or impecuniosity, and its claim was not found to have a "good chance of success." The motion was granted, ordering the plaintiff to post security for costs totaling $149,000 in three installments, and staying the proceeding until the first installment was posted.