This trial involved two consolidated construction lien actions concerning the priority of lien claimants (Hogg Fuel & Supply Limited and Absolute Electric) against mortgagees (Home Trust Company and Centurion Mortgage Capital Corporation) due to a deficiency in the statutory holdback.
The owners and general contractor failed to retain the required holdback.
The court determined that the lien claimants' entitlement to priority for the basic holdback expired because their liens were not preserved within 45 days of the Certificate of Completion's publication.
Consequently, the lien claimants were granted priority over the Home Trust mortgage only for the deficiency in the finishing holdback (10% of their claims).
The Centurion mortgage was deemed not a construction mortgage, thus no priority applied against it.
Full judgment for the lien amounts was awarded against the non-appearing owners and general contractor.
