
Legal Blog:
Setoff
There is always a jockeying for position in a construction dispute. One example is set out in C & A Steel (1983) Ltd. v. Tesc Contracting Company Ltd., a 1998 decision of the Ontario Court (General Division).
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After a lien is registered, it is not unusual for the lien to be quickly vacated by way of a payment into court. Sometimes, it simply takes too long to obtain a lien bond. Further, if a contractor needs to vacate the lien quickly to release monies otherwise payable, the contractor is not going to quibble over the amount of the lien – even if it is inflated. The contractor will simply pay the amount claimed, plus 25% for costs, into court.
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