Wednesday, February 26, 2014

Security for costs and merits of proceeding

Ataliotis v. Assiniboine Credit Union Ltd., 2014 MBCA 16:

Consideration of Merits of Action

[15]                    One of many factors a Master or motion judge is entitled to consider in exercising their discretion whether to order security for costs is the merits of a proceeding (DeBono v. Smith et al. reflex, (1989), 62 Man.R. (2d) 98 at paras. 3-4 (Q.B.); Shore-Kalo at para. 4; Matic et al. v. Waldner et al., 2013 MBQB 134 (CanLII), 2013 MBQB 134 at para. 7, 292 Man.R. (2d) 259).

[16]                    Consideration of the merits of a proceeding in a motion for security for costs, however, is “not [to] be used as a device to stifle an arguable claim” (Franck at para. 28).

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