The defendant, Haccpone Co., Ltd., brought a motion under section 104 of the Courts of Justice Act seeking an order that the plaintiff, Dent-X Canada, pay security into court equal to twice the value of mask-making machinery delivered to it.
Haccpone alleged non-payment under a contract that allowed for repossession.
Dent-X disputed the existence of the contract, alleging the machinery was compensation for a prior failed delivery and raising issues of fraud and civil conspiracy.
The court dismissed the motion, finding that Haccpone failed to establish substantial grounds for its claim or that the balance of convenience favoured granting the order, noting significant factual disputes requiring a trial.
