Canada Judgment

Court of Appeal for Ontario

Peng v. Chen Estate

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01

Holding and result

The motion judge applied the correct legal tests and did not err; given the existence of multiple outstanding unpaid costs orders totaling over $146,000, the appellant's limited satisfaction of costs obligations, findings that the appeal lacked merit and showed lack of diligence, and prejudice to respondents, the order for $50,000 security for costs was justified and the review motion to set it aside was dismissed.

Court disposition

Motion dismissed; order for security for costs of $50,000 upheld.

Orders

  • Motion dismissed
  • Appellant to pay security for costs in the sum of $50,000 by March 20, 2026
  • If security is not paid by March 20, 2026, respondents may move on notice for dismissal of the appeal
  • Costs fixed at $10,000 payable by Ms. Peng to the responding party

02

Material facts

Parties

Xin Peng

Appellant Counsel: acting in person

Estate of Shun Kun Ma Chen, also known as Shun Kun Chen, deceased

Respondent

May Hing Tam, personally and in her capacity as the named Estate Trustee of the Estate of Rafael Yang Ling Chen, also known as Rafael Chen

Respondent Counsel: Shael Eisen; Juanita Valencia

Peter Chen, by his litigation guardian, the Public Guardian and Trustee

Respondent

Amounts and remedies

  • Security for Costs Ordered: CAD 50,000
  • Outstanding Costs Orders (approximate Total): CAD 146,000
  • Costs Fixed Payable by Appellant: CAD 10,000
  • Single Costs Order Satisfied by Appellant: CAD 500

03

Procedural history

  1. Posture

    Civil Appeal — Motion Under S.7(5) Courts of Justice Act for Review of Order for Security for Costs / Review of Motion Judge's Order on Security for Costs (appeal Motion)

04

Questions and positions

Legal issues

Party arguments

Applicant
The appellant sought to set aside the motion judge's order requiring $50,000 security for costs and relied on affidavit material filed after the motion judge's decision to challenge the order and the findings justifying it.
Respondent
Respondents argued the motion judge correctly applied the legal tests and that security was warranted because there are multiple outstanding costs orders totaling over $146,000, the appellant had satisfied only one small costs order, the appeal appeared frivolous and lacking diligence, and the estate and beneficiaries suffered prejudice; respondents opposed consideration of documents not before the motion judge.

05

Court’s reasoning

  1. 01

    Correct Building Corporation v. Lehman, 2022 ONCA 723, para. 3

    A s.7(5) review will only result in interference if the motion judge erred in principle, reached an unreasonable result, or the decision reflects legal error or a misapprehension of material evidence.

  2. 02

    Rules of Civil Procedure, R.R.O. 1990, Reg. 194; r.61.06(1)(a),(b); r.56.01(c)

    An order for security for costs of an appeal may be made under r.61.06(1)(a) where there is good reason to believe the appeal is frivolous and vexatious and the appellant has insufficient assets in Ontario; r.61.06(1)(b) and r.56.01(c) permit security where there are outstanding unpaid costs orders.

  3. 03

    Yaiguaje v. Chevron Corporation, 2017 ONCA 827, paras. 17-19

    In deciding a security for costs motion the court must consider all relevant considerations and make an order that is just in all the circumstances.

06

Ratio, limits and disposition

Ratio decidendi

The motion judge applied the correct legal tests and did not err; given the existence of multiple outstanding unpaid costs orders totaling over $146,000, the appellant's limited satisfaction of costs obligations, findings that the appeal lacked merit and showed lack of diligence, and prejudice to respondents, the order for $50,000 security for costs was justified and the review motion to set it aside was dismissed.

Obiter and limits

  • It is inappropriate to overturn a motion judge's order on the basis of material that was not before that judge.
  • Findings of fact by an application judge are entitled to significant deference on appeal.

Court disposition

Motion dismissed; order for security for costs of $50,000 upheld.

  • Motion dismissed
  • Appellant to pay security for costs in the sum of $50,000 by March 20, 2026
  • If security is not paid by March 20, 2026, respondents may move on notice for dismissal of the appeal
  • Costs fixed at $10,000 payable by Ms. Peng to the responding party

Source and reliance status

Court of Appeal for Ontario · 9 March 2026

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Judgment text

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Source document

Court of Appeal for Ontario

Judgment· 9 March 2026

2026 ONCA 174

Peng v. Chen Estate Collection Decisions of the Court of Appeal Date 2026-03-09 Neutral citation 2026 ONCA 174 Docket numbers COA-25-CV-0554, M56520 Judges van Rensburg, Katherine; Miller, Bradley; Coroza, Steve A. Subject Civil Decision Content

COURT OF APPEAL FOR ONTARIO CITATION: Peng v. Chen Estate, 2026 ONCA 174 DATE: 20260309 DOCKET: M56520 (COA-25-CV-0554) van Rensburg, Miller and Coroza JJ.A. In the Estate of Shun Kun Ma Chen, also known as Shun Kun Chen, deceased

BETWEEN Xin Peng Appellant (Moving Party) and Estate of Shun Kun Ma Chen, also known as Shun Kun Chen, deceased, currently without an Estate Trustee, May Hing Tam*, personally and in her capacity as the named Estate Trustee of the Estate of Rafael Yang Ling Chen, also known as Rafael Chen, and Peter Chen, by his litigation guardian, the Public Guardian and Trustee Respondents (Responding Party*) Xin Peng, acting in person Shael Eisen and Juanita Valencia, for the responding party, May Hing Tam Heard and rendered orally: March 5, 2026 On review of the decision of Justice Darla A. Wilson of the Court of Appeal for Ontario, dated October 20, 2025.

REASONS FOR DECISION [1] The moving party Ms. Peng brings a motion pursuant to s. 7(5) of the Courts of Justice Act, R.S.O. 1990, c. C.43 asking a panel of this court to set aside the order of Wilson J.A. dated October 20, 2025. That order required Ms. Peng to post security for costs of her appeal in the amount of $50,000. [2] In a motion under s. 7(5), this court will only interfere if the motion judge erred in principle, reached an unreasonable result or if the decision reflects legal error or a misapprehension of material evidence: Correct Building Corporation v. Lehman, 2022 ONCA 723, at para.

3. No such error has been demonstrated here. [3] An order for security for costs of an appeal can be made pursuant to r. 61.06(1)(a) of the Rules of Civil Procedure, R.R.O. 1990, Reg. 194 if there is good reason to believe the appeal is frivolous and vexatious and the appellant has insufficient assets in Ontario to pay the costs of the appeal. Pursuant to r. 61.06(1)(b) and r. 56.01(c) the court can make an order for security for costs of an appeal when it appears that there is an outstanding order for costs that is unpaid in whole or in part in favour of the respondent. In deciding a motion for security for costs the court is required to consider all relevant considerations and to make an order that is just in all the circumstances: Yaiguaje v. Chevron Corporation, 2017 ONCA 827, at paras. 17-19. [4] The motion judge referred to the fact that there were 11 costs orders outstanding totaling over $146,000, that some have been outstanding for more than two years, and that the moving party has satisfied only one costs order in the amount of $500. She also concluded that there was good reason to believe the appeal lacks merit and is frivolous, based on the fact that Ms. Peng appears to be challenging the application judge’s findings of fact (which would be entitled to significant deference on appeal) and her lack of diligence in perfecting her appeal, even after obtaining an

extension of time to do so. [5] The motion judge also took into consideration the prejudice to the respondents. Due to the appellant’s pending claims, the estate has been unable to make distributions to cover the costs of care of a party under disability who is a beneficiary. [6] At the hearing of the review motion before us Ms. Peng relied on affidavit evidence affirmed after the motion judge released her decision, and purporting to respond to the motion judge’s reasons. It would be inappropriate for this court to reverse the motion judge’s order based upon material that was not before her. In any event none of the additional materials persuade us that the motion judge erred. [7] The motion judge concluded, after considering the correct legal tests and all of the circumstances, that an order for security for costs in the sum of $50,000 was warranted. We see no reason to interfere with this order. [8] The motion is accordingly dismissed. The moving party has until March 20, 2026 to pay the security for costs ordered by the motion judge, failing which the responding parties may move on notice to her for a dismissal of the appeal. [9] Costs fixed at $10,000 payable by Ms. Peng to the responding party. “K. van Rensburg J.A.” “B.W. Miller J.A.” “S. Coroza J.A.”

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Authorities

Authorities used by the court

Cases, legislation, regulations, and constitutional provisions identified in the available record.

Correct Building Corporation v. Lehman, 2022 ONCA 723

Case cited

Yaiguaje v. Chevron Corporation, 2017 ONCA 827

Case cited

Courts of Justice Act, R.S.O. 1990, c. C.43, s.7(5)

Legislation

Legislation referenced in the available case record.

Rules of Civil Procedure, R.R.O. 1990, Reg. 194, r.61.06(1)(a); r.61.06(1)(b); r.56.01(c)

Legislation

Legislation referenced in the available case record.

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