Should Security For Costs Motions Be Treated Differently When A Foreign Judgment Is Involved?

An order for security for costs can be made for a range of reasons. Its primary purpose is to give protection to the moving party by ensuring funds are available to cover their litigation costs. Where security for costs is sought against a litigant seeking to enforce a foreign judgment in Ontario, however, should the Court be less inclined to make such an order? A recent decision of the Ontario Court of Appeal, Yaiguaje v. Chevron Corporation, 2017 ONCA 741, answers this question in the negative.

Facts

Yaiguaje involved an attempt by Ecuadorian plaintiffs to enforce a judgment of an Ecuadorian Court of $9.5 billion dollars in Ontario (the "Ecuadorian Judgment") against Chevron Canada, being the seventh-level, indirect subsidiary of the Chevron Corporation ("Chevron").