The moving party, 2B Developments, sought an order staying the trial judge's final order which dismissed its action, discharged its construction lien, and awarded damages to the respondent.
Applying the RJR-MacDonald test, the Divisional Court found that the appeal raised serious issues to be tried, including procedural fairness and the trial judge's finding of fraud.
The court held that 2B would suffer irreparable harm if the stay were refused because the discharge of a construction lien is irrevocable, resulting in the permanent loss of a statutory right.
Finding the balance of convenience favoured 2B, the court granted the motion to stay the discharge of the lien pending appeal.