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ARTICLE · 09 APRIL 2006

Construction Law - Limits on Lien Rights?

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On March 14, 2006, the Divisional Court of Ontario released its judgment in the matter of Kennedy Electric Ltd. et al. v. Dana Canada Corporation and Rumble Automation Inc.

CanadaReal Estate and Construction
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Originally published March 31, 2006

Divisional Court Rules on Kennedy Electric Ltd. v. Dana Canada Corporation and Rumble Automation Inc.

On March 14, 2006, the Divisional Court of Ontario released its judgment in the matter of Kennedy Electric Ltd. et al. v. Dana Canada Corporation and Rumble Automation Inc. The outcome of the appeal was that the Divisional Court upheld the trial decision that the installation of an assembly line was not an "improvement" within the meaning of section 1(1) of the Construction Lien Act ("CLA"), and did not give rise to lien rights. Justice Chapnik disagreed with the majority decision of Justice O’Driscoll and Justice Wilson and wrote an extensive and strongly reasoned dissenting opinion.

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