Prasher Steel Ltd. v. Pre-Eng Contracting Ltd.: Liens Do Not Expire On A Subcontract-by-Subcontract Basis

As our readers are aware, Ontario's Construction Act succeeded Ontario's Construction Lien Act ("CLA") in 2018. Notwithstanding the new legislation taking effect, however, elements of the CLA still continue to apply in certain circumstances as a result of the Construction Act's transition provisions. For example, the CLA may continue to apply for construction contracts and subcontracts where the in-force legislation at the time of contract execution was the CLA.

In general, the transition provisions of the Construction Act are complicated, and understanding how the courts interpret provisions of the CLA remains valuable – and in fact necessary in many instances – to understanding the Construction Act. Of the same token, many provisions of the CLA can be found in either the same or substantively similar form in the Construction Act, such that the proper interpretation of CLA provisions may be relevant to the proper interpretation of those provisions' counterparts