What is the test for obtaining security for costs in a personal injury action?

Manitoba, Canada


The following excerpt is from Gray et al v. Webster et al, 1998 CanLII 6168 (MB CA):

26 There too the principle has developed that an order for security for costs should not ultimately deny the plaintiffs their day in court unless it is plain that the plaintiffs’ action has no prospect of success. As noted in Falso v. De Stefanis, [1992] B.C.J. No. 337 (S.C.): Simply assessing a claim as low in merit and finding a plaintiff impecunious will normally not be sufficient to attract an order for security for costs.

27 In England, where the applicable rule is very similar in its structure to that of Ontario, the courts have indicated that it is not appropriate to get into the merits of the case on an application for security for costs unless it can be clearly demonstrated that there is a high degree of probability of success or failure. See Porzelack KG v. Porzelack (UK) Ltd., [1987] 1 All E.R. 1074 (Ch.Div.).

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