Background:
Private Trading Group, LLC sued the Government of Manitoba and Scott Sinclair for $6 million USD, claiming the defendants failed to pay the balance for a shipment of medical respiratory masks delivered in 2020. The Government counterclaimed for $13 million USD, asserting the masks were unfit for their intended purpose, justifying repayment of the prepayment.

Legal Issues:
The defendants sought an order for security for costs, arguing that Private Trading Group, LLC was a non-resident corporation without assets in Manitoba. The plaintiff resisted, claiming the masks—held in Manitoba and valued over $98,000 at $0.02 per mask—should serve as security.

Court’s Analysis:
The court applied Manitoba's King’s Bench Rules for security for costs. It recognized goods in litigation as potential security but noted the masks’ disputed ownership and uncertain value. Neither party provided conclusive evidence of the masks’ current worth. The plaintiff bore the burden of proof and failed to establish that the masks’ value exceeded the $81,480 sought by the defendants as security for costs.

Outcome:
The court ordered Private Trading Group, LLC to post security for costs of $81,480 in favor of the defendants. The court dismissed the argument that the masks could sufficiently secure costs, citing the lack of evidence of their current value. The decision included provisions for an agreed payment schedule and allowed further submissions on costs if not resolved.