The plaintiffs (defendants to the counterclaim) brought a motion for security for costs against one of the defendants (plaintiff by counterclaim), a foreign corporation resident in China.
The court found that while the corporate defendant was ordinarily resident outside Ontario, an order for security for costs would be unjust.
The court held that the counterclaim was closely connected to the main action and substantially served as a defence to the plaintiffs' claims regarding a construction contract and settlement agreement.
The motion was dismissed with costs awarded to the defendants.
