Civil Procedure Rules of Nova Scotia  
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Part 10 - Temporary Remedies

Rule 45 - Security for Costs

Scope of Rule 45
45.01 (1) This Rule provides a remedy for a party who defends or contests a claim and will experience undue difficulty realizing on a judgment for costs if the defence or contest is successful.
  (2) A party against whom a claim is made may make a motion for security for costs, in accordance with this Rule.
       
Grounds for ordering security
45.02 (1) A judge may order a party who makes a claim to put up security for the potential award of costs in favour of the party against whom the claim is made, if all of the following are established:
   
(a)
the party who makes a motion for the order has filed a notice by which the claim is defended or contested;
   
(b)
the party will have undue difficulty realizing on a judgment for costs, if the claim is dismissed and costs are awarded to that party;
   
(c)
the undue difficulty does not arise only from the lack of means of the party making the claim;
   
(d)
in all the circumstances, it is unfair for the claim to continue without an order for security for costs.
  (2) The judge who determines whether the difficulty of realization would be undue must consider whether the amount of the potential costs would justify the expense of realizing on the judgment for costs, such as the expense of reciprocal enforcement in a jurisdiction where the party making the claim has assets.
  (3) Proof of one of the following facts gives rise to a rebuttable presumption that the party against whom the claim is made will have undue difficulty realizing on a judgment for costs and that the difficulty does not arise only from the claiming party‚Äôs lack of means:
   
(a)
the party making the claim is ordinarily resident outside Nova Scotia;
   
(b)
the party claimed against has an unsatisfied judgment for costs in a proceeding in Nova Scotia or elsewhere;
   
(c)
the party making the claim is a nominal party, or a corporation, not appearing to have sufficient assets to satisfy a judgment for costs if the defence or contest is successful;
   
(d)
the party making the claim fails to designate an address for delivery or fails to maintain the address as required by Rule 31 - Notice.
  (4) A judge may also order security for costs in either of the following circumstances:
   
(a)
the security is authorized by legislation;
   
(b)
the same claim is made by the same party in another proceeding, and it is defended or contested by the party seeking security for costs on the same basis as in the proceeding in which security for costs is sought.
       
Terms of order
45.03 (1) An order for security for costs must require the party making the claim to give security of a kind described in the order, in an amount equal to or lower than that estimated for the potential award of costs, by a date stated in the order.
 
(2)
The judge may require any kind of security, including payment of money into court.
 
(3)
A judge who requires payment into court may fix a deadline for paying the entire amount, or permit the paying party to make the payment in installments.
       
Stay and dismissal
45.04 (1) An order for security for costs stays the proceeding, or that part of the proceeding for which the security is due, until the security is given or the claim is dismissed.
  (2) An order for security for costs to be paid by installments stays the proceeding until the first installment is made or the claim is dismissed.
  (3) A party who obtains an order for security for costs may make a motion for dismissal of the claim if the party ordered to provide security fails to do so as ordered.
       

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