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A contractor's lien claim against a hotel owner was dismissed because the individuals who ordered the renovations lacked authority to bind the owner.
Dean's Standard Inc. ("Dean's") brought a construction lien claim against Siljub Toronto Ltd. ("Siljub") for renovation services provided to a hotel room.
Dean's alleged an oral contract with individuals (Mr. O and Mr. Marchuk) who represented themselves as purchasers of the hotel, arguing they had apparent authority or that Siljub ratified the contract.
The court found no actual, apparent, or ostensible authority for Mr. O and Mr. Marchuk to bind Siljub, nor any ratification by Siljub.
The court also noted Dean's failure to name the actual contracting parties (Mr. O and Mr. Marchuk) as defendants.
Dean's request to amend its pleading to add unjust enrichment was denied due to prejudice and the expeditious nature of Construction Lien Act claims.
The claim was dismissed, and the construction lien discharged.