Matthew Smiley

The applicant First Nation sought an interpleader order to pay a construction holdback fund into court due to multiple adverse claims from subcontractors, a garnishee, and the Canada Revenue Agency (CRA).

The court granted the interpleader, finding that the fund was neither the property of the general contractor (Razar) nor a debt payable to Razar, based on the contract terms and the Construction Act's trust provisions.

Consequently, the priority claims of the garnishee and CRA were dismissed as premature, as their claims depended on the fund being the general contractor's property.

Eco Depot Ltd. brought a motion under the Construction Act to discharge a construction lien registered by RJ Concrete & Construction Ltd., arguing willful exaggeration and abuse of process, or alternatively, a reduction in the lien amount.

Eco Depot also sought an extension to file a statement of defence.

The court found that the lien was not willfully exaggerated or an abuse of process, as the calculation was based on the agreed contract price for completed work, not actual costs.

However, the court agreed the lien amount was too high and ordered it reduced from $70,282.42 to $47,230.42.

The court also granted Eco Depot an extension to file its statement of defence.