Legal Blog:
Allocate
As a rule, when a debtor makes a partial payment towards a series of debts, the debtor has the right to choose the debts to which the payment is to be allocated. The corollary to this rule is that if the debtor does not choose, then the creditor can do so.
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A claim for lien arises the moment that a sub provides work to an improvement. It expires 45 days after the earlier of the date that (i) the subcontract is certified to be (totally) complete, (ii) a certificate of substantial performance is published for the entire project, and (iii) the sub performs its last work for the improvement. What happens when the sub seemingly performs its last work on day 100, but then performs more work on day 150? Does it lose its lien rights at day 146? As always, it depends. The issue was discussed in Applewood Glass & Mirror Inc. v. Baun Construction Inc., a 2009 decision of a Master of the Ontario Superior Court of Justice. You may also review our newsletter of January 1999 (Last Screw) for more information on this subject.
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