The defendant moved for security for costs against the plaintiff, a Quebec holding company that acquired the claim via assignment from a bankrupt subcontractor.
Although the plaintiff demonstrated it had sufficient cash assets in Quebec (a reciprocating jurisdiction), the court ordered it to post $30,000 in security.
The court found that the overall justice of the case favoured an order because the plaintiff's assets were contingent on litigation success, the funds were essentially treated as the principal's personal property, and the plaintiff would suffer no prejudice from posting security.
