The Court considered an Application for an Order for Security for Costs against two individual Respondents whom the Applicants claimed were insolvent.

The Court followed a two-step process: first, considering the factors in Rule 4.22; and second, considering whether it was just and reasonable to grant the Order. Justice Ross first determined that the factors set out in Rule 4.22 supported an Order for Security for Costs. Justice Ross found that if the Applicants successfully defended the Counterclaim brought by the Respondents, the Respondents would not be able to pay a Costs award and the Applicants would be unable to satisfy a Costs Order against assets in Alberta. Furthermore, in analyzing the merits of the Action, Her Ladyship found the evidence suggested that there was a strong case against the Respondents.

Justice Ross also confirmed that, given the evidence which suggested the Respondents had improperly used money meant to benefit the Applicants, it was just and reasonable to grant the Application for Security for Costs.