The defendant in a solicitor's negligence action brought a motion for security for costs under Rule 56.01(1)(d) of the Rules of Civil Procedure.
The plaintiffs, who were placed into receivership allegedly due to the defendant's failure to attend a receivership application, opposed the motion on the basis of impecuniosity.
The court found that the plaintiffs had demonstrated they could not raise security from their shareholders and that their claim was not plainly devoid of merit.
The motion was dismissed, and costs of $5,500 were awarded to the plaintiffs.
