After the Applicant applied to appeal an Order summarily dismissing his claim pursuant to Rule 7.3(1)(b) on the basis that it disclosed no cause of action, the Respondent applied for Security for Costs pursuant to Rules 4.22 and 14.67(1).

Justice Feehan first noted that the Court may order Security for Costs where it is just and reasonable to do so, upon consideration of the factors listed in Rule 4.22(a) to (e). Those factors include the ability to enforce an Order against assets in Alberta, the ability of the Respondent to pay a Costs award, the merits of the Action, the potential prejudice that such an Order could cause, and any other consideration that may be appropriate. His Lordship further noted that a “Costs Award” refers to a Costs Order made pursuant to Rule 10.31 or 10.43.

Justice Feehan determined that the Appellant had failed to pay previous Costs awards and that his Appeal appeared to have “little or no merit”. Additionally, there was found to be no evidence that a Security for Costs Order would prejudice the Appellant, and it was not known whether the Appellant had any assets in Alberta against which Costs could be enforced. As such, Justice Feehan ordered that the Appellant pay $2,750 into Court as Security for Costs, failing which the Appeal would be deemed abandoned. Costs of the Application were awarded against the Appellant.