What is the test for obtaining security for costs in an action?

Ontario, Canada


The following excerpt is from Monk Development Corporation v CVC Ardellini Investments Inc., 2016 ONSC 1778 (CanLII):

Second, if the defendant has succeeded at the first stage, the onus then shifts to the plaintiff to demonstrate that an order for security for costs would be unjust, by either demonstrating that it is impecunious and justice demands that it should be permitted to continue with the action, or by demonstrating that the plaintiff has sufficient assets to respond to a costs order. See Sadat v. Westmore Plaza Inc., [2013] O.J. No. 309, para. 20.

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