The plaintiff and other lien claimants sought a determination of the basic holdback amount under the Construction Lien Act following the sale of a partially completed retirement home project by the defendant mortgagee.
The mortgagee argued the holdback was reduced by payments made to sub-trades during construction.
The court found that the owner violated section 25 of the Act by releasing holdback funds before certificates of completion were issued, and that such a breach could not be cured retroactively.
The court fixed the basic holdback at the full 10% of the value of services and materials provided, plus applicable GST.
