Prompt payment is a fundamental goal of adjudication processes
under the Construction Act and crucial to ensuring that
the flow of money on construction projects is
protected.1 This goal is frustrated where determinations
are not meaningfully complied with. In a recent Ontario Superior
Court of Justice case, High Tech Power Inc. v. BDA Inc.,
Mills J. rendered a decision motivated by this very concern and
consistent with the practical, not merely symbolic, goal of prompt
payment.2
The Decision
Following an adjudication under the Construction Act,
High Tech Power Inc. ("High Tech")
obtained a favourable determination against BDA Inc.
("BDA") for $316,960.26. However, when
BDA paid out the amount, it did so through its lawyers, with the
funds being placed in its lawyers' trust account. Thereafter,
on consent, $161,037.68 was released to satisfy a debt owed by High
Tech to its unionized workers, but the balance of $155,922.58
continued to be held in trust by the