Background: 1233580 B.C. Ltd. and Western Sandpiper Holdings Ltd. entered an agreement concerning a fire-damaged property intended for a banquet business. Disputes arose over renovation responsibilities, payment, delays, and lease termination, leading to claims for damages.

Legal Arguments/Issues: Western Sandpiper Holdings Ltd. sought an order for the plaintiff to post security for costs totaling $42,028.90 within 30 days and a stay of action pending the posting of security. They argued that the plaintiff would be unable to pay their costs if the action failed. The plaintiff opposed, challenging the adequacy and admissibility of the evidence presented.

Applicable Law: The court applied section 236 of the Business Corporation Act, which allowed for security for costs if a plaintiff corporation could not pay the defendant's costs if the defense succeeded. The court also referenced Citizens for Foreign Aid Reform Inc. v. Canadian Jewish Congress and Kropp v. Swaneset Bay Golf Course Ltd. for relevant legal tests and considerations.

Analysis: The court found the defendant’s evidence insufficient, particularly regarding the lack of sworn evidence supporting their estimated costs. The draft bill of costs lacked detailed justification for the figures, which appeared arbitrary.

Outcome: The court dismissed the application for security for costs due to inadequate evidence. Costs were assigned in the cause, meaning they would be determined based on the final outcome of the case.