Security for Costs Calculator — Canada

Security for costs is a court order requiring a plaintiff to pay money into court or post a bond as a guarantee that, if the plaintiff loses, the defendant's costs award can be satisfied. It protects defendants from being unable to recover costs from a plaintiff who has no assets in the jurisdiction.

Under Rule 56.01, a defendant may move for security where the plaintiff is ordinarily resident outside Ontario, is a corporation or nominal plaintiff with reason to believe it lacks assets to pay costs, has another proceeding for the same relief pending, has an unpaid costs order, or where the action is frivolous and vexatious.

The amount is discretionary and typically approximates the partial indemnity costs the defendant would incur to the next major step or to the end of trial. Courts often order security in stages so the plaintiff is not required to post the entire projected costs at once.

Possibly. Courts balance the defendant's protection against access to justice. A plaintiff with a meritorious claim who genuinely cannot afford security may persuade the court to refuse or reduce the order, particularly where the impecuniosity was caused by the defendant's conduct.