The Superior Court of Justice recently updated their CaseLines Quick Tips page, including outlining how to link between documents.
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Superior Court of Justice CaseLines – Quick Tips
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Notice the Notice Requirements in Construction Contracts
Notice requirements in Ontario-based construction contracts are strictly interpreted by the courts. With few exceptions, a failure to strictly comply with a notice requirement can be used as a complete bar to otherwise valid claims for costs or time. Because of this, it is essential that parties to construction contracts take the time to assess what their notice obligations are before a dispute arises.
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Get Your Priorities Straight – What is the extent of lien claimants’ priority over mortgages?
The first decision of 2023 from the Court of Appeal for Ontario deals with the priorities between construction liens and building mortgages when a developer becomes insolvent.
In an insolvency situation, there are often many creditors seeking to recover from a limited pool of assets and determining priorities can be complex. This is also true for construction projects. Contractors, subcontractors, trades, and suppliers all need to know their rights (and limitations) on collecting for services and materials from an insolvent developer.
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Speaking at the Managing Risk in Construction Contracts & Projects Conference
Want to learn more about the art of construction contract negotiation? Join Faren Bogach, Joshua Strub and John Dowse on February 22 at 1:00 pm. See the flyer for a 10% discount.
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Court Briefs: A New Way (for lawyers) to Serve Documents (Form 16B.1)
A recent amendment to the Rules of Civil Procedure (Rule 16.09(1.1)) allows for a lawyer to prove service of a document by way of a Lawyer’s Certificate of Service (Form 16B.1) if the lawyer served the document or caused it to be served and is satisfied that service was effected. In cases such as this, Form 16B.1 replaces Form 16B Affidavit of Service and can be used as proof of service when filing documents with the Ontario Superior Court of Justice.
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Information is power: know your right to information under the Construction Act
There are good reasons to exercise your rights under section 39 of the Construction Act. Some of the reasons include:
- You need information to properly preserve your lien (like the correct names of the parties, or whether a landlord paid a tenant allowance);
- You want to know if there is a labour and material bond to secure payment; or,
- You want information about the statement of accounts to see if your work has been paid by the owner, or whether there is sufficient holdback for your lien.
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Compare and Contract: CCDC2 and CCDC 5A
CCDC contracts are ubiquitous in the construction industry. They are used for all manner of different project types and sizes, so much so that familiarity with these documents is almost becoming required to do business in Ontario’s construction industry.
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When Does a Limitation Period Run for a “Running Account”?
An important deadline for any litigation is the limitation period, which is the final date by which a lawsuit for specific a claim must be commenced. The limitation period is important because, if missed, the plaintiff may be barred from ever bringing a lawsuit to seek recovery of that claim.
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ONE YEAR
One year ago today, Construct Legal opened during a snow storm that pretty much shut down Toronto. It was a memorable first day.
It has been a journey filled with highs, lows, and everything in between. It hasn't been easy, but it has been rewarding.
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ADJUDICATION BASICS
Adjudication is a new method of dispute resolution contained in the Ontario Construction Act. It allows parties to a construction contract to enforce a right of payment without going to court.
See the fact sheet Prompt Payment & Adjudication 101 to determine if your contract qualifies for adjudication.
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Can an owner hold back on releasing holdback? Yes, if it complies with the Construction Act
An owner in a construction contract is required to retain 10% of the price of the services and materials as they are supplied under the contract. The holdback is to be retained until all liens that may be claimed against the holdback have expired, been satisfied, discharged or otherwise provided for under the Construction Act. The requirement to retain holdback applies from large infrastructure projects to small home renovations.
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Court Briefs: You Got Served (really, this new Form 8B says so)
A recent amendment to the Rules of the Small Claims Court allows for a lawyer or paralegal to prove service of a document by way of a Certificate of Service (Form 8B) if the lawyer or paralegal served the document or caused it to be served and is satisfied that service was effected. In cases such as this,
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Fireside Chat with Faren Bogach
If you want to learn more about Faren Bogach and her experience practicing in private practice with three young kids, check out Prudence Tsui's blog,
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The Consumer Protection Act and Residential Construction
Residential construction and renovation can be complicated. So can the contracts. Contractors and homeowners alike should understand when the Ontario Consumer Protection Act, 2002 (the CPA) applies and what its requirements are. The recent Ontario Superior Court of Justice case of The Fifth Wall Corp. v Tonelli, 2022 ONSC 6590 helps to clarify when the CPA applies to residential construction and renovation contracts.
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Season’s Greetings from Construct Legal
We are edging closer to celebrating our first anniversary at Construct Legal. We are grateful to our clients and referral sources for trusting us with their business. We wish everyone a relaxing holiday season.
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Owners: Take Notice of the Notice of Non-Payment
“But the payment certifier hasn’t approved the invoice yet” is no longer a reason for an owner to refuse to pay a contractor’s proper invoice.
Any owner must pay a contractor within 28 days of receiving the contractor’s proper invoice, unless the owner gives the contractor a Notice of Non-Payment within 14 calendar days of receiving the proper invoice.
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Lien on Us: Timelines for a Lien
The golden rule when dealing with construction liens is that they must be preserved and perfected on time. Preserving a lien requires registering a claim for lien on title to the property or in certain cases, giving a copy of the claim for lien through the proper channels. Perfecting a lien is the next step in the process and requires commencing an action to enforce the lien and potentially registering a certificate of action on title to the relevant property. Ontario’s courts have repeatedly confirmed that they have no ability to revive an expired lien if a deadline is missed—so it is essential for contractors and suppliers to be aware of the timelines associated with their lien rights.
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Our Team Photos!
It has taken almost 11 months, but we finally have our firm photos on our website! Please check out our photos and read our bios to learn a bit more about our team.
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A Reprise for Reprisal Clauses: How Have Courts Treated Reprisal Clauses in Construction Procurement?
What are reprisal clauses and what is their effect?
A reprisal clause is a provision in an owner’s procurement documents, or, for a government owner, its by-laws or procurement policy, allowing the owner to reject or exclude any bidders or proponents that are in a dispute with the owner.
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We are officially welcoming Tara Hobel to Construct Legal!
Tara is our firm’s Legal Assistant Extraordinaire!
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