In a commercial tenancy dispute arising from lease agreements and a rezoning arrangement for property intended to be used as a hotel, the plaintiff moved under Rule 45.02 of the Rules of Civil Procedure for an order preserving funds paid to the defendant.
The defendant brought a cross‑motion seeking security for costs under Rule 56.01(1)(d), arguing the plaintiff corporation lacked assets in Ontario.
The court held that the $200,000 security deposit constituted a specific fund tied to the litigation and ordered it preserved by payment into court, but declined to extend preservation to advance rent or rezoning contributions, which were characterized as damages claims.
The court also granted the defendant’s motion for security for costs, finding the plaintiff had insufficient assets in Ontario and had not shown a good chance of success to avoid such an order.
The quantum of security for costs was fixed at $15,000 through the end of oral discovery.