The defendant brought a motion seeking security for costs under Rule 56.01(1)(d) of the Rules of Civil Procedure, arguing there was good reason to believe the plaintiff lacked sufficient assets in Ontario to satisfy a potential costs award.
The court reviewed evidence including alleged asset transfers, a bonding company's security enforcement, delayed corporate filings, lien claims, and non-payment of previous costs orders.
The court held that the moving party failed to meet the required evidentiary threshold showing indicia of insolvency or corporate instability.
Much of the evidence was speculative, hearsay, or insufficient to establish asset insufficiency.
The motion for security for costs was dismissed.