The defendant, Scott Allen Smith, brought a motion seeking security for costs from the plaintiff, Nevada Tours, a Mexican corporation, on the grounds that the plaintiff was ordinarily resident outside Ontario.
The plaintiff opposed, arguing the motion was barred by s. 249(3) of the Business Corporations Act (OBCA) as its claim against Smith was primarily for oppression.
The court dismissed the motion, finding that the plaintiff's claim against Smith was in pith and substance an oppression claim, thus triggering the s. 249(3) prohibition against security for costs.
The court also found the plaintiff had sufficiently pleaded facts to potentially qualify as a "complainant" under the OBCA.
