Context: Blazer Mechanical was ordered to pay $66,737.75 as security for costs due to their impecuniosity. Blazer appealed this decision, claiming an insurance policy could cover costs awarded by trial, thus challenging the necessity of the security payment.

Arguments:

• Blazer: Argued the insurance policy could cover eventual costs, stating that not considering this policy leads to undue prejudice against their ability to continue the lawsuit.
• Delnor: Contended that the insurance policy does not explicitly cover such costs and any coverage is purely speculative.

Court's Findings and Ruling:

• Review Standard: The appeal was thoroughly reviewed for correctness, with no deference to the previous decision.
• Security for Costs: The court used rule 4.22 criteria, focusing on the enforceability of judgments, Blazer's financial capability, and the merits of the case.
• Insurance Inadequacy: The policy was deemed inadequate as it provided no clear, guaranteed coverage for the costs, making it speculative.
• Case Merits and Prejudice: While not entirely meritless, Delnor’s defense was substantial. No evidence showed undue prejudice to Blazer that would prevent continuing the action.

Outcome: The appeal was dismissed, upholding the initial security for costs order due to Blazer's lack of an adequate alternative and inability to demonstrate financial means to cover costs. Blazer was given one month to comply with the order.