Second Round Knockout: Security for Costs and the New Construction Act

Ontario’s reformed Construction Act has been fully in force since October 1, 2019. The changes to the Act and its regulations are still settling across the province, at times in surprising ways. In the Ontario Superior Court’s recent decision, The Gatti Group Corp v. Zuccarini, 2019 ONSC 7050 (“Zuccarini”), the Act amplified the defendants’ successful second security for costs motion, resulting in an order that the plaintiff post $95,000 into court in 30 days.

The case profiles the court’s flexibility and discretion when awarding security for costs. More importantly, the Act’s security for costs formula may be used as a guideline for future security for costs awards in construction matters.