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Adjudication Effects

Adjudication is the means by which the prompt payment provisions of the Construction Act (“Act“) are enforced. An adjudication decision will order, on an interim basis, that a party either pay or not pay money to another. It is interim because an adjudication order can be overturned in an arbitration or court proceedings. Does an adjudication decision have any other effect on the parties? This question was answered in Arad Incorporated v. Rejali, a 2023 decision of the Ontario Superior Court of Justice.

Convoluted

This case demonstrates the usual problems with a residential project. No one really knew who was contracting with whom. We have a corporate plaintiff (call it the subcontractor) and the subcontractor’s principal. We have a general contractor. And we have two owners.

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