Legal Blog

Security for Costs

1652472 Ontario Inc v. Miwel Construction Ltd. 2016 Ont SCJ (MC)

The Master confirmed that a motion for security for costs was appropriate in a construction setting, particularly when a lien had been vacated by posting security. He noted that shareholders were not obliged to make themselves liable for costs nor to pledge their own assets as security. It was their decision to make. However, if they did not post security, their corporation had no right to continue with the litigation. The Master stressed that to show impecuniosity, the shareholders had to supply proper evidence.

Written by Jonathan Speigel Jonathan Speigel, the founding partner of Speigel Nichols Fox LLP, leads the litigation and construction practices.