Forrest

The defendants brought motions for security for costs against the plaintiffs in a 12-year-old action regarding water damage to commercial premises.

The court previously found the plaintiffs failed to prove impecuniosity.

The plaintiffs failed to adduce evidence demonstrating a good chance of success against any of the defendants on liability or damages, particularly given a $250,000 advance payment already made.

The court ordered the plaintiffs to post security for costs in tranches for each of the moving defendants, totaling $530,000 for the first tranche.

On a preliminary motion common to four security for costs motions, the responding plaintiffs asserted impecuniosity.

The court held that impecuniosity requires full and frank financial disclosure, and that a corporate plaintiff bears the added burden of proving it cannot raise funds from shareholders or associates.

The evidence tendered by both the corporate plaintiff and the estate trustee plaintiff was vague, incomplete, and insufficiently documented, with major gaps concerning assets, liabilities, bank accounts, tax filings, shareholder loans, and the estate's financial position.

The court found neither plaintiff had established legal impecuniosity and directed the matter to proceed to further scheduling, with costs to be addressed if necessary.