Legal Blog

Adjudication and Payment into Court

Arad Incorporated v. Rejali 2023 Ont SCJ

Contractor liened for money owed. In the meantime, the parties had two adjudications: one by the contractor for money owed and the other by the owner for money overpaid to someone associated with the contractor. We gather that the adjudicator had little evidence to go on and ultimately dismissed both adjudications. He held that the contractor had been paid everything to which it was entitled and that any overpayment was made to someone other than the contractor. The owner, who had paid money into court to vacate the contractor’s claim for lien moved for the return of that money. The judge refused. He held that an adjudicator’s decision was an interim decision and that it did not bind the court; it was merely one piece of evidence. The adjudicator’s decision alone was therefore insufficient to justify the loss of the contractor’s security.

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