The defendants brought a motion for security for costs against the corporate plaintiffs in an action alleging bad faith and negligence by the insurers.
The court found that the defendants met their initial burden under Rule 56.01(1)(d) as the plaintiffs were corporations with insufficient assets in Ontario.
The burden shifted to the plaintiffs, who failed to prove impecuniosity due to incomplete financial disclosure and undisclosed real estate purchases.
The plaintiffs also failed to demonstrate a good chance of success on the merits of their bad faith claim.
The court ordered the plaintiffs to post security for costs in installments totaling $65,000.
