The defendants brought a motion for security for costs against the plaintiff, Unionville Education Inc. (UEI), seeking $41,443.46.
The court granted the motion in part, ordering UEI to post $20,000 in security for costs, payable in tranches.
The court found that UEI had insufficient assets in Ontario to pay costs, satisfying Rule 56.01(1)(d).
The requested amount was reduced because the defendants had asserted a substantial counterclaim and had engaged in unreasonable conduct, including failing to comply with discovery undertakings and serving motion materials late.
The court also set aside a noting in default, granted leave for the defendants to serve a statement of defence and counterclaim, and ordered a further discovery for one of the plaintiff's shareholders.
Costs of the motion were ordered to be absorbed by each party due to the defendants' procedural misconduct.