The defendants moved for security for costs against the corporate plaintiffs under Rule 56.01(1)(d), alleging insufficient assets in Ontario.
The plaintiffs claimed impecuniosity caused by the defendants' conduct and a meritorious claim.
The court found the defendants met the initial onus regarding insufficient assets.
However, the plaintiffs failed to provide robust financial disclosure, including that of their shareholders, to prove impecuniosity.
The court also found the plaintiffs' impecuniosity was not caused by the defendants' conduct and that their claim, while not devoid of merit, did not meet the higher standard of having a good chance of success.
Consequently, the motion for security for costs was granted, ordering the plaintiffs to pay $20,340 into court.