The defendant moved for security for costs under Rule 56.01(1)(a) and (d) of the Rules of Civil Procedure on the basis that the plaintiff corporation was resident outside Ontario and lacked assets within the jurisdiction.
The plaintiff argued that it possessed sufficient assets in Michigan and that reciprocal enforcement legislation would permit enforcement of any costs award there, and also relied on the defendant’s delay in bringing the motion.
The court held that the defendant met the threshold for ordering security because the plaintiff was a non-resident corporation with insufficient Ontario assets and had failed to provide convincing evidence of sufficient exigible assets in Michigan.
While the defendant had delayed bringing the motion for several years, the circumstances justified ordering security only for costs incurred after the motion rather than the full estimated costs of the action.
The plaintiff was ordered to post staged security totalling $35,000.