Legal Blog

Lien Validity

HMI Construction Inc. v. Index Energy Mills Road Corp. 2017 Ont Div Ct

The decision by a judge to reduce security posted to discharge a claim for lien is a final order and therefore can be appealed to the Divisional Court. In determining the actual value of work done for purposes of a lien, value is measured by the contract. Quantum meruit does not come into play unless there is an incremental progress between progress billings or milestones. A motions judge is entitled to reduce lien security if the evidence supporting the calculation of the claim for lien fails to establish a reasonable basis for the amount claimed. In this case, the lien security was reduced from $32 million to $16 million.

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