Adjudicator's Determination "Not Determinative" On Motion To Return Security

Arad Incorporated v. Rejali, 2023 ONSC 3949

This was a motion brought by the defendants under section 44(5) of the Construction Act for the return of monies paid into court to vacate a lien. The sole issue on the motion was whether the court should order the return of the monies paid into court, on the basis that an adjudicator determined the lien claimant was not entitled to any amount.

The parties participated in two adjudications under Part II.1 of the Act. The adjudication initiated by the plaintiff contractor was for alleged monies owing for work performed. The adjudication initiated by the defendant owner was for monies allegedly overpaid to the plaintiff's principal. The adjudicator dismissed both adjudications, finding that neither party owed the other any amounts.