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November 23, 2009
Lien Times for Lenders: Plan with Care
By Amy Mortimore
From time to time, we receive questions about court decisions from other provinces. One Ontario case which has garnered some interest in British Columbia is Parkland Plumbing & Heating Ltd. v. Minaki Lodge Resort 2002 Inc. 2009 ONCA 256, a decision of the Ontario Court of Appeal. The question in this case was whether or not a company that had loaned monies and had secured them by way of a mortgage but was related to the developer was an "owner" within the meaning of the Ontario Construction Lien Act (the equivalent of our Builders Lien Act). The reason that this was an important question for the parties was because if the lender was an "owner", it would rank lower in priority than the lien claimants and there were insufficient funds to pay the mortgage and the lien claims.
Construction Law Bulletin is produced by the Infrastructure, Construction & Procurement Group at Clark Wilson. The information and links in this bulletin should not be treated by readers as legal advice and ought not be relied upon without further, detailed legal counsel being sought.