The defendants, Walsh Construction Company Canada and WCC Construction Canada, ULC o/a Walsh Canada, brought a motion for security for costs against the plaintiff, Gowing Contractors Ltd., under Rule 56.01(1)(d) of the Rules of Civil Procedure, arguing Gowing lacked sufficient assets in Ontario.
Gowing opposed, asserting that significant unpaid holdback funds from completed subcontract work constituted sufficient assets.
The court dismissed Walsh's motion, finding that Walsh failed to meet the threshold onus of demonstrating Gowing's lack of assets.
The Associate Justice held that the holdback funds, even subject to Walsh's set-off claims, were properly considered an asset of Gowing, especially since Walsh had not sufficiently particularized or quantified their alleged set-offs beyond a certain amount, leaving an excess holdback amount that exceeded the requested security for costs.