Claims by Rapid Camp Ltd.:
- Breach of fiduciary duty
- Negligent misrepresentation
- Breach of confidence
- Misuse and wrongful disclosure of proprietary information
- Intentional interference with proprietary information, contractual relations, and economic interests
Defendants' Motion:
- The Defendants sought an order for security for costs under Civil Procedure Rule 45, arguing that Rapid Camp Ltd. is unlikely to be able to pay their legal costs if the defense is successful.
Key Points from the Decision:
- Civil Procedure Rule 45 Requirements:
- A notice of defense must be filed.
- Defendants will face undue difficulty recovering costs if they win.
- Difficulty should not stem solely from the plaintiff's lack of means.
- It must be unfair for the claim to continue without security for costs.
- Findings:
- All Defendants filed their defenses.
- Rapid Camp Ltd. is dormant, with no assets or business activities, meeting the requirement for undue difficulty in cost recovery.
- The company's lack of assets supports the presumption that the defendants will struggle to recover costs, which Rapid Camp failed to rebut.
- Given the company's financial status and the intent to continue litigation solely for this case, it is deemed unfair to proceed without security for costs.
- Security for Costs Ordered:
- Each defendant group (Dalhousie and Swan; NSPI and McGregor) is to receive $50,000, totaling $100,000.
- Security must be provided by May 15, 2024, or paid into court if parties cannot agree on the form.
Conclusion:
- The motion for security for costs was granted to protect the defendants' financial interests, balancing access to justice against shielding plaintiffs from cost liabilities in litigation.
