The Defendant sought an Order for Security for Costs pursuant to Rules 4.22 and 4.23. In granting the Application, Master Laycock considered the decision of Wittmann C.J. in Attila Dogan Construction v AMEC Americas Ltd, [2011] AJ No 308, 2011 ABQB 175, which, at paras 24 and 25, sets out a two-step test for Security for Costs Applications pursuant to Rule 4.22.

The first step is to review the five factors set out in Rule 4.22 (a-e), being the likelihood of enforcing an Order or Judgment against assets in Alberta, the ability to pay costs, the merits of the Action, undue prejudice, and any other matters the Court considers appropriate. If, based on these factors the Court is in favour of granting the Application, then the Court must consider the second step of the test. The second step is to ask whether it is just and reasonable to grant the Order for Security having taken into account the factors in Rule 4.22.