North Bay Capital Investments Ltd. (North Bay) brought a motion to discharge a construction lien filed by XPL Construction Solutions Inc. (XPL) and to dismiss the action against it, with Verg Construction Corp. and Anthony Vergalito supporting the motion.
North Bay later abandoned the dismissal request.
The court found significant credibility issues and competing narratives regarding the scope of work and invoicing practices between XPL and Verg.
The judge dismissed North Bay's motion to discharge the lien, concluding that there were triable issues and that XPL's claim was not frivolous, vexatious, or an abuse of process.
However, the court exercised its discretion to reduce the lien amount from $872,617.26 to $699,535.02 due to certain improperly included expenses and exaggerated time claims, without prejudice to XPL pursuing the full amount at trial.
