Legal Blog

Adjudication

Pasqualino v. MGW-Homes Design Inc. 2022 Ont SCJ

Contractor registered a lien for $169,000, owner vacated it by posting money as security, and then contractor commenced an adjudication. The adjudicator ruled that owner pay the contractor $119,000. The owner balked. He argued that the contact had been terminated because the contractor registered a lien and therefore the adjudicator had no jurisdiction. The judge dismissed the appeal because (i) the owner did not argue jurisdiction before the adjudicator; (ii) a simple allegation of termination or abandonment would allow an owner to gut the adjudication provisions; and (iii) the owner would not be paying twice because he could obtain an order reducing the security that he posted to vacate the lien.

Written by Jonathan Speigel, the founding partner of Speigel Nichols Fox LLP, leads the litigation and construction practices.