Legal Blog

Preservation of Lien (Lien Time)

Toronto Zenith Contracting Ltd. v. Fermar Paving Ltd. 2016 Ont SCJ

The subcontractor had shut down a paving operation for the winter. Over the winter, it had a dispute over unpaid accounts with the general and terminated its contract in February, before it was scheduled to recommence. It registered a claim for lien on a timely basis if the termination date was the date upon which the lien period started to run, but would have been late if the last day of work was the date upon which the lien period was to start to run. The judge held that the lien period started to run on termination. Merely because the subcontractor had stopped the on-site work, did not mean that it was not doing work “in respect of” the project. The sub had been submitting shop drawings, obtaining some additional materials, and preparing for the spring start-up.

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