I’m a commercial tenant and I hired a contractor to do some leasehold improvements for me. We had a falling out and my contractor registered a claim for lien and I have to deal with it because the terms of my lease require me to get it off title. The problem is that the contractor’s claimed amount is more than double what I might possibly owe him – do I have to pay the full amount in to Court as security even though the claimed amount is so inflated?

Not necessarily. The Construction Lien Act has provisions (sections 44(2) and 44(5)) to permit reduced security in cases such as this.  The trick is being able to convince the Court that less than the full amount of the claim for lien is both appropriate and fair.  This is one of countless good reasons to create a very good paper trail and confirm things in writing as they unfold.

Posted in: Ontario Construction Lien Act FAQs