The defendants brought a motion for leave under the Construction Act to seek security for costs against the plaintiff.
The plaintiff had sued for unpaid invoices and lost profits after the defendants terminated a construction contract due to a loss of financing.
The court found good reason to believe the plaintiff, a formerly dormant shell corporation with no apparent assets, had insufficient assets in Ontario to pay a costs award.
The plaintiff failed to demonstrate sufficient assets or that its claim had a good chance of success.
The court granted leave and ordered the plaintiff to post $201,765.54 as security for costs, staying the action until payment.
