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Preservation of Lien (Lien Time)

Clarkway Construction Ltd. v. 2247129 Ontario Inc. 2016 Ont SCJ (Master)

The general indicated on January 25 that it would no longer perform any work on the project. The owner accepted that termination on February 9 and advised the general to remove all of its equipment from the project. The sub did not remove its equipment and on April 14, the owner wrote directly to the sub requesting it to remove its equipment. The sub registered a lien within 45 days of receiving the notice from the owner, but not within 45 days from either January 25 or February 9. The Master vacated the lien holding that a sub is in no better position than the general and, accordingly, the time to preserve a lien, under these circumstances, starts to run when the prime contract is abandoned or terminated.

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