This judgment addresses the lienability of equipment repair services and materials supplied by Toromont Industries Ltd. and Val Rita Tire Sales Ltd. to 450477 Ontario Limited o/a Chartrand Equipment, a general contractor for a remote gold mine project.
BDO Canada Limited, as Chartrand's receiver, disputed these construction lien claims.
The court applied a "functional nexus" test, focusing on whether the services and materials were necessary for the project's completion and benefited all contractors, rather than a strict "consumption" theory or geographical location.
Given the extreme wear and tear on equipment and the extraordinary commitment required from the suppliers due to the project's nature and remoteness, the court found both Toromont and Val Rita's claims entirely lienable.
The court also clarified that the existence of rights under the Repair and Storage Liens Act (RSLA) does not automatically preclude claims under the Construction Lien Act (CLA) unless an election to enforce RSLA rights has been proven, which the receiver failed to do.