November.26.2015

Insurers and Security for Costs Applications

The BC Supreme Court has ruled that evidence relating to insurance coverage can be used to resist an application to order a litigant to pay security for costs.  In Corden Holdings Ltd. v. The Lookout Emergency Aid Society 2015 BCSC 2059 a third-party litigant applied for an order to compel the defendant that had brought it into the action to post costs.  The defendant successfully resisted the application despite its limited exigible assets in part by providing the court with information from its insurer.  This ruling will be of assistance to counsel arguing not only third party matters but also subrogated claims.  A Briefing Note discussing the case in more detail can be accessed here.

James E. Silvester