The defendants brought a motion seeking security for costs from the corporate plaintiffs in an action arising from a real estate joint venture.
The plaintiffs, who had no assets in Ontario, argued they were impecunious and that their claims had merit.
The court found that the plaintiffs failed to meet the high evidentiary burden to prove impecuniosity, as they did not provide evidence of efforts to raise funds from their principals or investors.
Balancing the factors, the court ordered the plaintiffs to post $70,000 in security for costs on a partial indemnity scale up to the completion of discoveries.