The defendants, RepVisor Portfolio Systems Inc. et al., brought a motion seeking $100,000 (later reduced to $81,000) in security for costs from the plaintiff, Ian McLean, in his capacity as Trustee of the JSL Trust.
The moving parties argued that the plaintiff was a nominal plaintiff and lacked sufficient assets in Ontario to cover a potential costs award.
The plaintiff countered that he was not a nominal plaintiff, possessed sufficient assets, and that section 249(3) of the Ontario Business Corporations Act (OBCA) provided immunity from posting security for costs for oppression remedies.
The court dismissed the motion, finding that the plaintiff, as a trustee with fiduciary duties, was not a nominal plaintiff, and the moving parties failed to demonstrate insufficient assets.
Furthermore, the court noted that the action, in substance, was an oppression remedy, which weighs against ordering security for costs under the OBCA.
The plaintiff was awarded $5,000 in costs.