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ARTICLE · 16 FEBRUARY 2014

Good News For Corporate Plaintiffs In Alberta?

Bennett Jones LLP
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A defendant seeking a security for costs order against a corporate plaintiff faces a more stringent test than other defendants, the Alberta Court of Queen’s Bench recently held in Amex Electrical Ltd v 726934 Alberta Ltd, 2014 ABQB 66.

CanadaCorporate/Commercial Law

A defendant seeking a security for costs order against a corporate plaintiff faces a more stringent test than other defendants, the Alberta Court of Queen's Bench recently held in Amex Electrical Ltd v 726934 Alberta Ltd, 2014 ABQB 66.

In Amex, the Court considered an application by certain defendants for a security for costs order against a corporate plaintiff. In a detailed decision, the Court noted the potential applicability of two statutory provisions: section 254 of the Alberta Business Corporations Act, RSA 2000, c. B-9, and Rule 4.22 of the Alberta Rules of Court. These provisions state:

Security for costs

254         In any action or other legal proceeding in which the plaintiff is a body corporate, if it appears to the court on the application of a defendant that the body corporate will be unable to pay the costs of a successful defendant, the court may order the body corporate to furnish security for costs on any terms it thinks fit.

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