Vincent Man

The defendants brought a motion under Rule 56.01(1)(a) of the Rules of Civil Procedure seeking security for costs against a foreign corporate plaintiff with no assets in Ontario or Canada.

The plaintiff argued it had substantial assets in the United States and that any Ontario costs order could be enforced in California, a reciprocating jurisdiction.

The court held that the defendants met their initial burden because the plaintiff was ordinarily resident outside Ontario.

The plaintiff failed to provide sufficient financial evidence demonstrating its ability to satisfy a potential costs award.

The court therefore exercised its discretion to order staged security for costs while reducing the amount sought by the defendants.

The defendant moved to stay an Ontario action pending the outcome of a related proceeding commenced in Kentucky.

The plaintiff sought declaratory relief concerning its proprietary interest in an internet domain name within Ontario.

The court found the action had a real and substantial connection to Ontario, as the plaintiff’s operations, witnesses, and relevant activities were located in Ontario and Ontario law would likely govern the dispute.

The court concluded that the defendant failed to establish that the balance of convenience favoured the Kentucky proceeding.

The motion to stay the Ontario action was dismissed.