Construction Liens: Resolving Costs In Default Actions

In a construction lien dispute, Alfa Mechanical filed a motion for default judgment against the Changs over a Toronto property lien. The parties set aside the default noting but disagreed on costs. The court awarded Alfa expenses for the noting in default but not for broader legal costs. The Changs challenged the motion, questioning the Construction Act's allowance for lien validation through default judgments and the jurisdiction of associate judges. The court suggested that default judgments might validate liens and emphasized the need for notice to all affected parties. The case highlights complexities in construction lien enforcement and cost allocation.

To enforce a construction lien, a lienholder must commence an action against the appropriate defendants in the appropriate court. A defendant may be noted in default if it fails to defend the action. What costs are warranted if a noting in default is set aside? How does a default judgement affect the validation