The defendants in three related construction lien and non-lien actions moved for security for costs against the plaintiff subcontractor.
The court found good reason to believe the corporate plaintiff had insufficient assets in Ontario, as it had ceased operations and its only assets were contingent claims.
The plaintiff failed to prove impecuniosity, having provided insufficient evidence of its inability to raise funds from shareholders or affiliates.
The court ordered the plaintiff to post security for costs in the aggregate amount of $215,000 on a staged basis, reducing the defendants' requested $500,000 to account for the significant counterclaims advanced by the defendants.
