The owners of a residential property sought to discharge a construction lien registered by Serena Homes Construction Limited in the amount of $1,612,303.43.
The owners alleged that Serena Homes fraudulently altered invoices from subcontractors to inflate costs.
Serena Homes acknowledged exaggeration in the lien amount and proposed a reduction to $1,352,092.55, later adjusted to $1,043,282.55 after further review.
The court found that while the lien contained exaggerated amounts, the claim was not frivolous or vexatious, and a substantial debt remained owing for services provided.
The court reduced the lien to $1,043,282.55 rather than discharging it entirely, finding that the exact amount owing and whether mark-ups were contemplated by the agreement were issues for trial.
