LIENS - Payment of monies into court - Effect of posting security

Law360 Canada ( June 6, 2018, 8:25 AM EDT) -- Appeal by the plaintiff from an order reducing the amount of security paid into court to secure the appellant’s builders lien claim from $1,136,593 to $550,000. The underlying dispute concerned the value of work done for the construction of a mixed-use residential tower by the appellant prior to its termination by the respondent developer. The appellant’s claim included components for base contract work, extra work and changes, and interference by the developer. The developer applied to have the lien discharged or reduced. The developer took the position that the lien amount was grossly excessive. It alleged that the claim amounted to approximately the total amount to be paid to the appellant pursuant to the contract that was terminated well before completion of all of the work. The developer argued that the lien claim included claims such as change orders and expenses incurred due to interference with the appellant’s ability to perform the work which could not be claimed because of non compliance with the notice provisions of the contract. The judge found that a significant portion of the difference between the two work in progress reports related to items which, although properly claimable at the trial of the underlying action, should not be secured by this powerful pre-judgment weapon....
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