S. Turgeon

The defendant was entirely successful on a motion for security for costs against the plaintiff Bankruptcy Trustee.

The defendant sought partial indemnity costs of $16,605.88, while the plaintiff proposed $4,409.12.

The court fixed costs at $15,000 all-inclusive, applying the factors in Rule 57.01 and the principle of fair and reasonable expectations.

The court declined to defer payment until after trial, ordering payment before any further steps are taken, but refused to order the Bankruptcy Trustee to pay the costs personally under s. 197(3) of the Bankruptcy and Insolvency Act.

The defendant brought a motion for security for costs against the plaintiff, a bankruptcy trustee.

The trustee had commenced an action regarding a trust agreement over a residential property.

The court found that the defendant did not require leave to bring the motion despite consenting to the action being set down for trial.

The court also determined that the claim was properly brought in civil court rather than bankruptcy court.

Applying the test for security for costs, the court found that the trustee had insufficient assets and failed to demonstrate impecuniosity, as it had not sought funding from creditors.

The court ordered the trustee to post $25,000 in security for costs.