Security for Costs in Ontario: When a Defendant Can Force You to Post Money

If you've started a lawsuit in Ontario, one motion you may not expect is a request from the defendant asking the court to make you pay money upfront — before the case is even decided. That's what security for costs does, and it can catch plaintiffs off guard if they're not aware it's a possibility.

The idea isn't that you're paying a penalty for suing. It's a safeguard for the defendant: if you lose and are ordered to pay their legal costs, the court wants some assurance that money will actually be there.

What Security for Costs Means

Security for costs is an amount of money (or sometimes another form of guarantee, like a bond) that a plaintiff can be ordered to post with the court, held to cover the defendant's costs if the defendant ultimately wins and is awarded costs against the plaintiff. It doesn't determine who wins the underlying dispute — it's a procedural safeguard, separate from the merits of the case.

Situations Where a Court Might Order It

Ontario's civil procedure rules allow a defendant to bring a motion for security for costs in certain circumstances, generally where there's a real concern that a costs award in the defendant's favour would be difficult or impossible to collect. Common scenarios include:

• The plaintiff lives outside Ontario and doesn't have enough assets within the province to satisfy a future costs order
• The plaintiff is a corporation without sufficient assets in Ontario to cover a potential costs award
• The plaintiff has an unpaid costs order from an earlier, related proceeding
• Other circumstances where the court considers it just to require security, based on the specific facts

An order isn't automatic just because one of these circumstances exists — the court weighs fairness on both sides, including whether requiring security would unfairly block a plaintiff with a genuine claim from being able to pursue it.

How the Process Typically Works

1. The defendant brings a motion asking the court to order security for costs, usually early in the litigation.
2. The court considers the plaintiff's financial circumstances, the strength of the claim, and whether ordering security would be fair given the specific facts.
3. If granted, the court sets an amount and a form (often cash or a bond) and a deadline for posting it.
4. The case is generally paused — the plaintiff typically can't take further steps in the litigation until the security is posted.

What Happens If the Plaintiff Doesn't Post It

If a plaintiff who's been ordered to post security for costs doesn't do so, the usual consequence is that the claim is stayed (paused indefinitely) or, if the failure continues, dismissed. In practice, this makes a security for costs order a significant strategic event in a case — it's not just a paperwork step, and ignoring it can end a claim entirely.

How to Avoid Being Caught Off Guard

• Understand early whether your circumstances (residence outside Ontario, limited assets, a corporate plaintiff with thin assets) might make you a candidate for this kind of motion.
• If you anticipate the issue, be prepared to show the court why security either isn't necessary or should be a modest amount.
• Factor the possibility into your litigation budget from the outset, rather than being surprised partway through the case.
• Get advice before responding to a security for costs motion — how you respond can affect both the amount ordered and the timeline of your case.

Frequently asked questions