A trustee brought a motion for security for costs under Rule 56.01 against a beneficiary who had commenced an application seeking to compel the trustee to pass accounts and to challenge an arrangement permitting occupation of trust property rent‑free.
The moving party argued the beneficiary resided outside Ontario and lacked sufficient assets to satisfy a potential costs award.
The court held that the underlying proceeding formed part of the beneficiaries’ right to require a trustee to account for the administration of the trust.
The court also noted that other beneficiaries, represented by the Children’s Lawyer, had interests in the proceedings and that the objections raised regarding trust disbursements were not frivolous.
In these circumstances, security for costs was not appropriate.
