Union Square Hospitality Group, LLC v. Aquilini Restaurants LP

Union Square Hospitality Group, LLC v. Aquilini Restaurants LP

Because the plaintiffs conceded foreign residence and offered no evidence of Canadian assets or impecuniosity, and because the defendant's draft Bill of Costs was inadmissible and based on an inapplicable Ontario costs regime, the Court exercised its discretion under Rules 416 and 418 to order staged security based on a Tariff B Column III calculation supported by the plaintiffs' evidence, fixing security at $20,000 payable in two stages with a stay of further steps until the first payment.

Citation
2025 FC 880
Parties
Plaintiffs/responding Parties: Union Square Hospitality Group, LLC and USHG IP, LLC; Defendant/moving Party: Aquilini Restaurants Limited Partnership
Court
Federal Court
Jurisdiction
Canada
Judgment Date
14 May 2025
Procedural Posture
Civil Intellectual Property / Costs Dispute / Motion for Security for Costs (pre Discovery, Pre Trial)
Outcome
Defendant's motion for security for costs granted.
Legal Topics
Security for Costs, Staging of Security, Tariff B Cost Assessment, Impecuniosity, Frivolous and Vexatious Actions
Source Language
English
Civil Procedure Costs Intellectual Property Trademark Law Security for Costs Staging of Security Tariff B Cost Assessment Impecuniosity +1 more

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Parties

Union Square Hospitality Group, LLC and USHG IP, LLC

Plaintiffs/responding Parties

Aquilini Restaurants Limited Partnership

Defendant/moving Party

Procedural Posture

Civil Intellectual Property / Costs Dispute / Motion for Security for Costs (pre Discovery, Pre Trial)

Legal Issues

  1. 1 Whether the Court should order security for costs under Rule 416
  2. 2 Whether plaintiffs are ordinarily resident outside Canada
  3. 3 Whether there is reason to believe the action is frivolous and vexatious under Rule 416(1)(g)

Ratio Decidendi

Because the plaintiffs conceded foreign residence and offered no evidence of Canadian assets or impecuniosity, and because the defendant's draft Bill of Costs was inadmissible and based on an inapplicable Ontario costs regime, the Court exercised its discretion under Rules 416 and 418 to order staged security based on a Tariff B Column III calculation supported by the plaintiffs' evidence, fixing security at $20,000 payable in two stages with a stay of further steps until the first payment.

Court Disposition

Defendant's motion for security for costs granted.

Orders

  • The Plaintiffs shall post security for costs of $20,000 in accordance with Rules 418 and 149: $10,000 to be posted by June 15, 2025; $10,000 to be posted within 15 days of their receipt of the Defendant’s affidavit of documents.
  • Until the first instalment is paid into Court, and subject to their right to appeal, the Plaintiffs may not take any further step in the proceeding other than paying security into Court in accordance with Rule 418.