The respondent in an application brought a motion for security for costs under Rule 56.01(1)(d) of the Rules of Civil Procedure.
The court found that the applicant corporation had admitted it possessed no assets and appeared to have been incorporated solely for the purpose of bringing the application.
The moving party therefore satisfied the first stage of the test demonstrating a basis for security for costs.
The applicant failed to file any responding evidence establishing impecuniosity or demonstrating that its claim had a strong likelihood of success.
The court held that it was just in the circumstances to order staged security for costs totalling $18,271.62 and awarded the moving party partial indemnity costs of the motion.
