The defendant lawyers brought a motion for security for costs and a stay of proceedings against the corporate plaintiff in a legal malpractice action.
The court granted a temporary stay due to the plaintiff's failure to file annual returns under the Corporations Information Act.
On the security for costs motion, the court found that while the corporate plaintiff had no assets, it failed to prove impecuniosity because its shareholders, who were also creditors, refused to fund the litigation but did not provide evidence that they lacked the means to do so.
The court ordered the plaintiff to post $60,000 in security for costs in three stages and stayed the action until the security is posted.
