The respondent brought a motion for security for costs against the applicant corporation under Rule 56.01(1)(d) of the Rules of Civil Procedure.
The court found that the applicant had ceased operations and had no assets in Ontario, satisfying the initial burden on the respondent.
The applicant failed to provide sufficient evidence of its assets or impecuniosity, particularly regarding access to funds through its shareholders, which is a high evidentiary threshold for corporate plaintiffs.
The court exercised its discretion, finding it just to order security for costs given the high probability that the respondent would be unable to collect costs if successful at trial.
The motion was granted, and the applicant was ordered to post $32,500 in security for costs and pay $7,500 in costs for the motion.
