Log in or register
Share on LinkedInShare on LinkedIn

ARTICLE · 10 NOVEMBER 2020

Protecting Contractors Is Paramount Case Study: Urbancorp Cumberland 2 GP Inc. (Re), 2020 ONCA 197

McCague Borlack LLP
Explore more from McCague Borlack LLP

In Ontario, the provincial legislation shows a commitment to protecting contractors and subcontractors by enabling them to collect outstanding balances owing for services and materials through the use of construction trusts, holdbacks and liens.

CanadaInsolvency/Bankruptcy/Re-Structuring
Howard Borlack
Howard Borlack
Author LinkedIn connections

Introduction

In Ontario, the provincial legislation shows a commitment to protecting contractors and subcontractors by enabling them to collect outstanding balances owing for services and materials through the use of construction trusts, holdbacks and liens. This case confirms this commitment and is a helpful decision for provincial contractors.

This decision clarifies the scope of a section 9(1) vendor's trust under the Ontario Construction Lien Act, R.S.O. 1990 c. C.30 (the "CLA") during insolvency proceedings by specifically referencing the issues of federal paramountcy.

The Construction Lien Act has been amended from the time of this decision. The name was changed to the Construction Act. However, the present issue arose under the previous version, and accordingly, this comment will refer to the act as the CLA throughout. The amendments made to the CLA did not affect the section 9(1) vendor's trust under the act, and therefore this decision remains

We operate a free-to-view policy, asking only that you register in order to read all of our content. Please login or register to view the rest of this article.

Register for freeORLog in

View source

Related Articles

Legal Intelligence Newsletters: sign up for the latest legal and regulatory news on your chosen topics

Read more about

Related Comparative Guides

See more popular content from

Article

Restructuring Before Insolvency: What Ravelin Means For Distressed Public Companies

A publicly listed REIT successfully restructured approximately $1 billion in defaulted debt through a CBCA plan of arrangement without filing for CCAA protection, demonstrating how corporate law mechanisms can serve as practical alternatives to formal insolvency proceedings. The Ontario Superior Court's decision in Re Ravelin Properties REIT also clarified that confidential restructuring negotiations do not necessarily trigger material change disclosure obligations for public companies.
CanadaInsolvency/Bankruptcy/Re-Structuring
Miller Thomson
Miller Thomson
Article

Priority Over Produce: Canada’s New Deemed Trust For Fresh Fruit And Vegetable Suppliers Cuts Into Secured Creditor Collateral

Canada's new Financial Protection for Fresh Fruit and Vegetable Farmers Act creates a deemed trust that prioritizes unpaid produce suppliers over secured lenders in bankruptcy and insolvency proceedings. How will this legislative change reshape lending practices and collateral valuations in the agricultural sector, and what steps should secured creditors take to protect their interests?
GlobalInsolvency/Bankruptcy/Re-Structuring
McMillan LLP
McMillan LLP
Article

Copyright Claims on Intellectual Work Property: Employee vs Employer

When a senior software developer secretly creates competing software on his own time, who owns the copyright? The Ontario Court of Appeal's decision in Nexus Solutions Inc. v. Krougly clarifies the boundaries of employer ownership over employee-created work, establishing that broad job descriptions alone cannot secure intellectual property rights without clear contractual terms or direct involvement in the creation process.
CanadaIntellectual Property
McCague Borlack LLP
McCague Borlack LLP