The defendants moved for an order requiring the plaintiffs to post security for costs.
The plaintiffs, a Ukrainian national residing abroad and a British Virgin Islands corporation with no Ontario assets, argued that Mr. Spektor's shares in Black Iron Inc. (BKI) were sufficient assets and that the defendants' wealth and a forum selection clause should negate or reduce the security.
The court found the BKI shares too volatile and illiquid due to the war in Ukraine and trading volume to serve as sufficient security.
It rejected arguments based on the forum selection clause and the defendants' affluence, distinguishing the case from Yaiguaje.
The motion for security for costs was granted, with the plaintiffs ordered to post $270,000 in installments, a reduction from the $318,000 sought, primarily due to the counterclaim.