Federal Courts Rules (SOR/98-106)

Marginal note:Where security available

• 416 (1) Where, on the motion of a defendant, it appears to the Court that

  • (a) the plaintiff is ordinarily resident outside Canada,

  • (b) the plaintiff is a corporation, an unincorporated association or a nominal plaintiff and there is reason to believe that the plaintiff would have insufficient assets in Canada available to pay the costs of the defendant if ordered to do so,

  • (c) the plaintiff has not provided an address in the statement of claim, or has provided an incorrect address therein, and has not satisfied the Court that the omission or misstatement was made innocently and without intention to deceive,

  • (d) the plaintiff has changed address during the course of the proceeding with a view to evading the consequences of the litigation,

  • (e) the plaintiff has another proceeding for the same relief pending elsewhere,

  • (f) the defendant has an order against the plaintiff for costs in the same or another proceeding that remain unpaid in whole or in part,

  • (g) there is reason to believe that the action is frivolous and vexatious and the plaintiff would have insufficient assets in Canada available to pay the costs of the defendant, if ordered to do so, or

  • (h) an Act of Parliament entitles the defendant to security for costs,

  the Court may order the plaintiff to give security for the defendant’s costs.

• Marginal note:Staging

  (2) The Court may order that security for the costs of a defendant be given in stages, as costs are incurred.

• Marginal note:Further steps

  (3) Unless the Court orders otherwise, until the security required by an order under subsection (1) or (2) has been given, the plaintiff may not take any further step in the action, other than an appeal from that order.

• Marginal note:Party temporarily resident in Canada

  (4) A party ordinarily resident outside Canada may be ordered to give security for costs, notwithstanding that the party may be temporarily resident in Canada.

• Marginal note:Voluntary payment into court

  (5) In the absence of an order under subsection (1), a plaintiff may, at any time after filing a statement of claim, pay an amount into court as security for the defendant’s costs and give notice of the payment to the defendant.

• Marginal note:Increase in security

  (6) The Court may, on the motion of a defendant, order a plaintiff who has paid an amount into court under subsection (5) to pay in an additional amount as security for the defendant’s costs.