On a motion for security for costs, the moving defendant argued that Manitoba-resident plaintiffs should post security despite their purchase of adverse costs insurance.
The court held that the insurance policy was not equivalent to payment into court because coverage could be terminated and the proceeds could not be assigned, although the existence of the policy remained a mitigating factor.
Applying the justice-based inquiry under Rule 56.01, the court found the claim had some merit, the plaintiffs were financially constrained, and one plaintiff was a victim of criminal assaults arising from the same events.
In light of s. 4(2) of the Victims Bill of Rights and the circumstances as a whole, the motion was dismissed, subject to an order requiring notice if the policy was cancelled.