L. Finegold

The defendant moved to stay the plaintiff's construction lien actions and discharge the liens, arguing that the plaintiff corporation lacked a controlling mind after its sole director became bankrupt.

The court found that neither the bankrupt director nor a secured creditor holding a share pledge agreement had the legal authority under the Business Corporations Act to direct the litigation.

The court stayed the actions but granted a 30-day cure period for the plaintiff to rectify the corporate governance issue, and ordered the plaintiff to post $150,000 in security for costs as a precondition to lifting the stay.

The plaintiff demolition contractor registered a construction lien after abandoning the site due to the defendant developer's failure to pay a progress draw.

The dispute centered on whether the contract required crushing concrete to 3-inch minus or 3/4-inch minus, and whether the plaintiff was responsible for removing asphalt and imported materials.

The court found the defendant breached the contract by failing to pay the progress draw, the contract specified a 3-inch minus crush, and the lien was registered in time.

After accounting for payments and proven backcharges, the defendant was ordered to pay the plaintiff $81,271.93.