The defendants moved for an order requiring the corporate plaintiff to post security for costs under Rule 56.01 of the Rules of Civil Procedure.
The defendants relied primarily on Rule 56.01(1)(c), arguing that the plaintiff had outstanding unpaid costs awards from prior litigation involving the same parties.
The court found that the defendants established entitlement to security for costs given the unpaid costs orders and the absence of evidence demonstrating that the plaintiff’s claim had a good chance of success.
The plaintiff, which conceded it was not impecunious, failed to provide supporting evidence for serious allegations of improvident power-of-sale transactions and misconduct by the defendants.
The court ordered the plaintiff to post $25,000 in security for costs within 30 days, failing which the action would be stayed.
