The defendant brought a motion for security for costs under Rule 56.01(d), arguing the corporate plaintiff had insufficient assets in Ontario.
The plaintiff, an inactive corporation with its only asset being the claim, argued impecuniosity.
The court found the defendant met the low threshold for insufficient assets.
The onus shifted to the plaintiff to prove impecuniosity, which requires demonstrating that the corporation and its shareholders cannot raise funds for security.
The plaintiff failed to provide sufficient evidence regarding its sole shareholder's financial resources.
The court ordered the plaintiff to post $7,500 in security for costs, significantly less than the $45,000 sought by the defendant, finding the defendant's claim excessive for a simplified procedure action.
The plaintiff's cross-motion to strike the defence or compel document delivery/settlement was dismissed, with the defendant ordered to deliver documents after security is posted.
Costs of the motion were fixed at $1,200 for the defendant, accounting for their overreach on the security amount.