The defendant, Yaw Jung Lee, brought a motion for security for costs against the plaintiff, K. Lee & Associates Ltd., a corporation with no assets.
The court applied the two-step inquiry under Rule 56.01(1) of the Rules of Civil Procedure, finding that the plaintiff's lack of assets satisfied the initial requirement.
Despite the plaintiff's assertion of being "not impecunious," the court determined that this did not alter the defendant's entitlement to security, as there was no enforceable claim against potential lenders.
The court also considered the defendant's counterclaim and the principle of proportionality.
The motion was granted, ordering the plaintiff to pay $61,250 into court as security for costs within 60 days, failing which the action would be stayed.
The defendant was also awarded $7,500 plus HST and disbursements for the costs of the motion.
