Legal Blog

Security for Costs

Lancaster Group Inc. v. Kenaidan Contracting Ltd. 2020 Ont SCJ (MC)

General contractor moved for security for costs against its sub. The Master set out the tests for security in a construction context. She held that the regular rule (i.e. good reason to believe the plaintiff had insufficient assets in Ontario to pay for an adverse cost award) was made more onerous in a construction action (i.e. demonstrate indicia of insolvency or corporate instability). Based on the Equifax reports, she held that the general had met its onus.

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