| Citation: |
Highland Produce Ltd. v. Egg Farmers of Canada, 2010 FC 401, [2010] 4 F.C.R. D-10 |
T-1475-09 |
Practice
Costs
Motion by applicant for order to approve proposed form of security for costs—Applicant ordered to post $50 000 security, attempting to comply by originally tendering time-limited letter of credit—Letter of credit, expiring after one year if notice given by bank, clearly unsatisfactory—Federal Courts Rules, SOR/98-106, r. 418 providing for two forms of acceptable security: money, bond—As applicant seeking to post security in form of letter of credit, Court considering practical, relevant differences between bond, letter of credit—Although bond made under seal, letters of credit, bonds closely analogous—Letters of credit having number of advantages including administrative simplicity—If properly drafted, letter of credit as secure as depositing money—Applicant proposing irrevocable letter of credit from TD Canada Trust—Proposed letter of credit from reputable financial institution providing adequate protection for costs if application dismissed—Motion granted.
Highland Produce Ltd. v. Egg Farmers of Canada (T-1475-09, 2010 FC 401, Lafrenière P., order dated April 13, 2010, 5 pp.)