J. Davis

On a preliminary motion common to four security for costs motions, the responding plaintiffs asserted impecuniosity.

The court held that impecuniosity requires full and frank financial disclosure, and that a corporate plaintiff bears the added burden of proving it cannot raise funds from shareholders or associates.

The evidence tendered by both the corporate plaintiff and the estate trustee plaintiff was vague, incomplete, and insufficiently documented, with major gaps concerning assets, liabilities, bank accounts, tax filings, shareholder loans, and the estate's financial position.

The court found neither plaintiff had established legal impecuniosity and directed the matter to proceed to further scheduling, with costs to be addressed if necessary.

The defendants brought motions for security for costs against the plaintiffs.

The plaintiffs sought leave to file a supplementary affidavit regarding their alleged impecuniosity, which was served six months after the deadline set by a court-ordered timetable.

The court denied leave, finding that plaintiffs' counsel failed to provide a reasonable, good faith explanation for the delay and had ignored the court's explicit direction to research the evidentiary requirements for impecuniosity before drafting the initial materials.