Appeal dismissed; corporate plaintiff not strictly required to prove creditors refused funding to establish impecuniosity.
The defendants appealed a motion judge's decision dismissing their application for security for costs and awarding substantial indemnity costs against them.
The defendants argued the corporate plaintiff failed to prove impecuniosity because it did not provide evidence that its creditors refused to fund the litigation.
The Divisional Court dismissed the appeal, holding there is no absolute requirement in every case for a plaintiff to show creditors declined to fund the litigation to establish impecuniosity.
The court also upheld the motion judge's findings on the merits of the claim and the costs award.
United General Contracting Ltd. v. The Corporation of the Municipality of Sioux Lookout, 2012 ONSC 542