Log in or register
Share on LinkedInShare on LinkedIn

ARTICLE · 01 JULY 2025

Beware The Bootstrap!

WeirFoulds LLP
Explore more from WeirFoulds LLP

The Construction Act, R.S.O. 1990, c. C. 30 (the "Act"), imposes strict deadlines on lien claimants to preserve and perfect their liens. The Act also explains the circumstances which would result in a lien expiring.

CanadaReal Estate and Construction
Ashley Landesman
Ashley Landesman
Author LinkedIn connections

The Construction Act, R.S.O. 1990, c. C. 30 (the "Act"), imposes strict deadlines on lien claimants to preserve and perfect their liens. The Act also explains the circumstances which would result in a lien expiring.

When faced with a payment dispute, contractors often decide between delaying the registration of a lien to focus on amicably resolving their dispute versus promptly registering a lien to meet the strict deadlines in the Act and secure their legal interests.

Contractors may be tempted to deal with this dilemma by attending on site unauthorized to perform inconsequential or trivial work that adds no value to the improvement, for the sole purpose of artificially extending their deadline to register a lien. This practice is referred to as "bootstrapping". Not only is this practice ineffective in achieving the desired effect of prolonged lien rights but it is also sanctionable by law.

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

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

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

Ontario’s Mandatory Annual Holdback Release Starts In 2027: What Owners And Contractors Need To Know

Starting in 2027, all Ontario project owners with contracts entered into on or after January 1, 2026, and most owners with contracts dating back to July 1, 2018, must start releasing statutory holdback to their contractors on an annual basis. This requirement is the latest in a series of construction payment reforms under Ontario’s Construction Act. It replaces the traditional model of retaining holdback until substantial performance. Owners and contractors who fail to comply with the notice and payment timelines face exposure to interest claims, payment disputes, and adjudication proceedings.
CanadaReal Estate and Construction
Miller Thomson
Miller Thomson
Article

The Coldcard Exploit: Why Victims May Have Two Routes To Recovery

A five-year-old firmware defect in Coldcard hardware wallets has enabled attackers to systematically drain an estimated $116 million in Bitcoin from over 5,200 victims since July 2026. This unprecedented exploit raises critical questions about manufacturer liability and creates two distinct legal pathways for recovery: blockchain tracing against the perpetrators and potential litigation against Canadian manufacturer Coinkite for product defects that undermined the fundamental security promise of devices mar
CanadaLitigation, Mediation & Arbitration
WeirFoulds LLP
WeirFoulds LLP
Article

Greenwashing In Canada: What The Competition Bureau’s 2026 Updated Environmental Claims Guidelines Mean For Your Business

Canada's Competition Bureau has released updated guidelines addressing environmental claims and greenwashing under the Competition Act. The guidelines establish six compliance principles and clarify how businesses must substantiate environmental benefit claims following recent legislative amendments, including changes introduced by Bill C-15 that provide greater flexibility in substantiation methods while maintaining evidence requirements.
CanadaAntitrust/Competition Law
WeirFoulds LLP
WeirFoulds LLP
Article

Who Pays After The Hack? Emerging Paths For Cyber Recovery

Recent court decisions reveal a developing area of cyber insurance subrogation where insurers can potentially recover losses from vendors, financial institutions, and service providers who failed to meet specific cybersecurity obligations. These cases demonstrate that a cybercriminal's involvement does not automatically shield third parties from liability when they breach contractual duties or ignore red flags that contributed to the loss.
United StatesInsurance
WeirFoulds LLP
WeirFoulds LLP