Articles 2023

Insolvency proceedings create a forum where numerous areas of law and commercial interests collide. With respect to construction projects affected by insolvency proceedings, given that there are usually insufficient funds to pay all creditors, these collisions are most pronounced in the determination of relative priorities.

These cases highlight some of the practical and legal considerations that lien claimants, lenders and court-appointed officers face with respect to interim financing in insolvency proceedings.

In Standard Condominium No 2095 v West Harbour City (I) Residences Corp (2013 ONSC 5987) the OSCJ enforced a limitation of liability provision thereby preventing a condominium corporation from seeking recourse against a developer for construction deficiency claims.

A reminder that lien claimants and their counsel take a significant risk when they take the Act’s deadlines lightly.

The electronic registration of construction liens and other land title documents in Ontario has brought many benefits to lawyers and law clerks.

Lawyers who do construction lien litigation are familiar with the process of “bonding off” liens under the Construction Lien Act, (Ontario). By posting a bond as security for the construction lien claim, a party can arrange to have the lien vacated from title to the land.

In typical construction contracts, the parties approach the project consultant to make a decision regarding the contractual obligations of the respective parties.

A fabulous end to another successful year! On June 11, 2013 we marked the conclusion of our 2012-13 term with a tour of the Toronto-York- Spadina subway extension and presentation of the inaugural OBA Award of Excellence in Construction Law at the year-end dinner.

The recent British Columbia Court of Appeal case of Greater Vancouver Water District v. North American Pipe & Steel Ltd. provides a very good reminder to suppliers of the risks of providing warranties in supply contracts.

Two of the more specialized areas of law are construction and insolvency law. Each area largely operates under its own rules, in its own forum with specialized counsel and clients. When the two disciplines intersect, disputes can become complex and contentious.