Two third party defendants sought security for costs against a defendant/third party claimant under Rule 56.01 of the Rules of Civil Procedure.
The court found the defendant corporation was impecunious but concluded it would be unjust to require security for costs because the third party claims were intertwined with the main action and could effectively prevent the defendant from defending the action.
In relation to the second third party, the court also refused security due to the advanced stage of the litigation and delay in bringing the motion.
Both motions for security for costs were dismissed and costs were awarded to the defendant.
