A B.C. court has ordered a firm suing CIBC and former CIBC executive Holger Kluge to post $120,000 in security or risk having the suit thrown out.

The judge concluded that CIBC is entitled to security in the amount of $120,000 for its anticipated taxable costs and disbursements in defending a suit brought by Equity Retirement Savings Systems Corp.

Equity Retirment is to post the security by Jan. 15, 2002, and the action will be stayed until security is posted. If security is not posted as ordered, the defendants will be at liberty to apply to strike out the action.

The lawsuit is a complex one in which Equity Retirement is suing CIBC and Kluge, who was a senior officer of the bank, for breach of fiduciary duty, misuse of confidential information and for disgorgement of certain profits earned by CIBC.

The claims arise out of allegations that Equity Retirement provided confidential information to CIBC so that the bank could evaluate a proposed issuance of RRSP rewards. According to Equity Retirement, CIBC wrongfully appropriated the information and used it for its own benefit in a VISA card program.

The trial was scheduled for five weeks commencing in early February 2002, but has now been adjourned by consent of counsel.