The defendant, AIM Recycling Hamilton, brought a motion for security for costs against the plaintiff, Compass Mechanical Contracting Inc., under Rule 56.01 of the Rules of Civil Procedure.
The plaintiff argued the motion was barred because the action had been set down for trial and that it was impecunious.
The court granted the defendant leave to bring the motion, finding the plaintiff had insufficient assets.
The court held that the plaintiff failed to provide robust financial disclosure to establish impecuniosity.
Balancing the interests of justice, the court ordered the plaintiff to post $20,000 in security for costs.