No Notice, No Claim: Ontario Courts Uphold Strict Notice Requirements in Construction Contracts
No Notice, No Claim: Ontario Courts Uphold Strict Notice Requirements in Construction Contracts Key Takeaway Reading a construction contract and following its terms are paramount, as Ontario courts continue to lean towards strict compliance with respect to notice provisions in construction contracts. In Elite Construction Inc. v. Canada (Attorney General), the Ontario Court of Appeal […]
Does a Direct Payment to Subcontractors Under Section 28 of the Construction Act Reduce Lien Security? It Depends.
Key Takeaways Reliance on a direct payment pursuant to s. 28 of the Construction Act, R.S.O. 1990, c. C.30 (the “Act”) is only valid if that payment was made to a person “having a lien”. A person does not ‘have a lien’ if their lien is expired or has otherwise been resolved by the Act. […]
Contract Completion and Adjudicator’s Jurisdiction under the Construction Act
Contract Completion and Adjudicator’s Jurisdiction under the Construction Act Key Takeaways The adjudicator failed to apply settled and longstanding jurisprudence to the meaning of deemed “contract completion” under the Construction Act. The date a contract is “completed” within the meaning of Subsection 13.5(3) of the Construction Act is determined by reference to the value of […]
Construction Lien Reference to Small Claims Court Is Discretionary
Construction Lien Reference to Small Claims Court Is Discretionary Key Takeaway Even if the monetary amount in dispute is within the jurisdiction of the Small Claims Court, the court has discretion on whether to refer a lien action to the Deputy Judge for trial. This discretion may depend on the most proportionate, timely, and affordable […]
Procedural Fairness and Adjudication Under Ontario’s Construction Act
Procedural Fairness and Adjudication Under Ontario’s Construction Act Key Takeaway An adjudicator that fails to allow parties to make submissions regarding a key and decisive issue will likely result in that determination being quashed for violating the fundamental principle of procedural fairness. The Background and Decision Pursuant to Section 6.5 of Ontario’s Construction Act, subject […]
Judicial Review of Adjudicator’s Decisions under the Construction Act: Recent Guidance from the Divisional Court
Judicial Review of Adjudicator’s Decisions under the Construction Act: Recent Guidance from the Divisional Court Introduction: The Construction Act’s prompt payment provisions have brought significant changes to the construction dispute resolution process. Adjudication, an interim dispute resolution mechanism created alongside the prompt payment provisions, plays a vital role in ensuring that prompt payment has real […]
Considering the Jurisdictional Nuances of an Associate Justice’s Authority
Considering the Jurisdictional Nuances of an Associate Justice’s Authority Key Takeaway It is important for counsel to be mindful of the jurisdictional limitations of an Associate Justice’s authority when assessing where to bring your client’s motion. The expanded authority of a lien reference Associate Justice pursuant to section 58(4) of the former Construction Lien Act, […]
The Termination or Abandonment of a Contract Does Not Mean It Has “Ceased to Exist”
The Termination or Abandonment of a Contract Does Not Mean It Has “Ceased to Exist” Introduction Last April, Joshua Strub and Jaspal Sangha released an article on the Divisional Court’s decision in SOTA Dental Studio Inc. v. Andrid Group Ltd.[1] to dismiss an application for judicial review of an adjudicator’s determination because of the applicant’s […]
Dismissal of a Non-Lien Action Within a Lien Proceeding for Delay May be Harder Than You Think
Dismissal of a Non-Lien Action Within a Lien Proceeding for Delay May be Harder Than You Think Key Takeaway Failure to set a lien matter down for trial within two-years may result in severe cost consequences and a dismissal of the lien action. However, if the lien action contains non-lien claims, such as claims for […]
Entire Agreement Clauses – Understanding the Nuances of Surrounding Circumstances
Entire Agreement Clauses – Understanding the Nuances of Surrounding Circumstances Key Takeaway Parties entering into a written contract should be aware that if a dispute arises about contractual interpretation, the inclusion of an entire agreement clause in the contract will not prevent the court from considering evidence relating to the circumstances of the contract formation. […]