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ARTICLE · 27 APRIL 2020

COVID-19 – Update – Are Lien Rights Affected By COVID-19?

On March 20, 2020 the Ontario government enacted a regulation pursuant to the Emergency Management and Civil Protection Act (the "Regulation").

CanadaCoronavirus (COVID-19)

On March 20, 2020 the Ontario government enacted a regulation pursuant to the Emergency Management and Civil Protection Act (the "Regulation"). Section 1 of the Regulation suspends any "limitation period" for the duration of the emergency, while section 2 of the Regulation suspends, subject to the discretion of the court, any period of time within which any step must be taken in any proceeding in Ontario, including any intended proceeding. This Regulation may affect lien rights in Ontario, namely the timing of the preservation of a lien.

Ontario courts have held that the time periods to preserve and perfect construction liens are not "limitation periods". Accordingly, it is unlikely that the time periods to preserve and perfect construction liens have been extended by section 1 of the Regulation. However, it may be possible for a lien claimant to rely on section 2 of the Regulation to argue that the period to preserve and perfect liens has been extended. There is no

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