J. Christopher Russell

The appellant general contractor appealed a decision finding that the former Construction Lien Act, rather than the amended Construction Act, applied to its dispute with the respondent owners.

The application judge held that the procurement process commenced before July 1, 2018, triggering the transitional provision in s. 87.3(1)(b), even though the initial proposal contemplated a different property and the respondents did not own the final property at the time of the proposal.

The Court of Appeal dismissed the appeal, finding that the proposal and the final contract related to the same improvement, and that a functional approach to ownership meant the respondents only needed to own the premises at the time of construction.

The applicant, Dalren Limited, sought payment of a final invoice and construction lien holdback, arguing that the prompt payment provisions of the Construction Act applied.

The respondents, Loadstar Trailers Inc. and 1978327 Ontario Ltd., contended that these provisions did not apply because the procurement process for the improvement commenced before July 1, 2018, falling under the Act's transitional rules.

The court found that the procurement process indeed began before the critical date, and that the applicant, despite not owning the land at the outset, qualified as an 'owner' under the Act for the purpose of commencing the procurement process.

Consequently, the prompt payment provisions were deemed inapplicable, and the application was dismissed.

The appellants appealed a summary judgment ordering them to pay $185,999.32 under Minutes of Settlement and dismissing their counterclaim.

The appellants argued the Minutes were unenforceable due to economic duress, claiming they were pressured by a construction lien that prevented refinancing.

The Court of Appeal upheld the motion judge's finding that there was no genuine issue for trial, as the appellants failed to satisfy the first prong of the economic duress test: they did not protest, had independent legal advice, had alternative courses of action, and took no timely steps to avoid the agreement.

The appeal was dismissed.