Acts and Regulations

Rule-58 - SECURITY FOR COSTS

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Current to 1 January 2024
COSTS
RULE 58
SECURITY FOR COSTS
58.01Where Available
A plaintiff may be ordered to furnish security for costs where it appears that
(a) he is ordinarily resident out of New Brunswick,
(b) the defendant has a judgment or order against the plaintiff for costs in another action, and those costs remain unpaid in whole or in part,
(c) he is a nominal plaintiff, and there is reason to believe that he has not sufficient assets in New Brunswick to pay the costs of the defendant if ordered to do so,
(d) it is an association as defined in Rule 9.01 or is a corporation and there is reason to believe that it has not sufficient assets in New Brunswick to pay the costs of the defendant if ordered to do so, or
(e) the defendant is entitled by a statute to security for costs.
58.02Time for Making Motion
A motion for security for costs may be made to the court at any time after the defendant has filed and served his Statement of Defence and before the action is set down for trial.
58.03Furnishing of Security
In an order for security for costs, the court shall
(a) fix the amount and form of the security,
(b) fix the time within which the security is to be given, and
(c) direct how and by whom the security is to be held.
58.04Form and Effect of Order
An Order for Security for Costs (Form 58A) shall stay all proceedings in the action from the date the order is served until the amount of security required has been furnished, unless provided otherwise.
58.05Default of Plaintiff
Where a plaintiff defaults in furnishing the security ordered, the defendant who obtained the order may apply on motion to dismiss the action.
58.06Amount May be Varied
The amount of security for costs may be increased or decreased by the court at any time.
58.07Notice of Compliance
Upon furnishing the security required by an order, the plaintiff shall forthwith give notice of his compliance to the defendant who obtained the order and to every other party.
58.08Payment Out
Any money held as security for costs may be paid out on the consent of the parties concerned or the court may order that it be paid out to any party.
58.09Other Security
Notwithstanding the provisions of this rule, any party to a proceeding may be ordered to furnish security for costs where the court has a discretion to impose terms as a condition of granting him relief.
58.10Security for Costs on Appeal
(1)A judge of the Court of King’s Bench or of the Court of Appeal may order security for costs (Form 58B) to be given by an appellant if
(a) a motion for such security is made within 15 days from the service on the respondent of the notice of appeal, and
(b) the judge is satisfied that such security ought to be provided.
(2)Unless the Court of Appeal orders otherwise, an appellant who fails to comply with an order for security for costs shall be deemed to have abandoned his appeal with costs to the respondent.
2022-86