The defendant, Farm Mutual Reinsurance Plan Inc. (FMRP), brought a motion for security for costs against the plaintiff, 2496300 Ontario Inc. (249), under Rule 56.01(1)(d) due to 249's insufficient assets. 249 did not dispute its lack of assets but argued against the order due to FMRP's unreasonable delay in bringing the motion, FMRP's alleged causation of 249's financial state, and 249's strong chance of success.
The court found FMRP's delay unreasonable, limiting the security to future costs.
The court also found that 249 failed to establish a "good chance of success" in overturning its independent contractor agreement.
The motion was granted in part, ordering 249 to post $50,000 for FMRP's future partial indemnity costs and to pay $15,000 in partial indemnity costs for the motion itself.