When will the court order security in a claim for damages for destruction of the business?

Ontario, Canada


The following excerpt is from A-Sandor Inc. v. 2811472 Canada Inc., 2007 CanLII 56503 (ON SC):

I acknowledge that the claim for damages for destruction of the business will involve the parties and the court in investigation of damages that flow from the allegedly wrongful receivership and the alleged misconduct of the receiver. This is not an inquiry that would be part of the debt defence per se and it is I think be open to the court to award security for the portion of the action that is in relation to this separate inquiry unless as in TD Bank v. Szilagyi Farms, supra doing so would be impractical and serve no purpose. I am therefore of the view that security should be ordered but I also feel it is premature to decide the quantum of security with any degree of precision at the moment. The appropriate approach is therefore to order a fairly nominal installment of security with the issue to be further reviewed once certain steps have been completed.

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