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ARTICLE · 14 MARCH 2016

The Relationship Between Trust And Lien Claims Under Provincial Builders' Lien Legislation

Stuart Olson Dominion Construction Ltd. ("Dominion") was the general contractor of a football stadium in Manitoba (the "Project").

CanadaReal Estate and Construction

Stuart Olson Dominion Construction Ltd. v. Structal Heavy Steel, 2015 SCC 43, per Rothstein, J.

I. FACTS AND ISSUES

Stuart Olson Dominion Construction Ltd. ("Dominion") was the general contractor of a football stadium in Manitoba (the "Project"). The owner of the Project was BBB Stadium Inc. (the "Owner"). Dominion entered into a subcontract with Structal Heavy Steel ("Structal") to supply and install structural steel work for the Project. 

Dominion began withholding payments to Structal and stated it was setting off against the unpaid amounts for back charges it claimed resulted from delays attributable to Structal. In September 2012, Structal filed a builder's lien against the Project Lands for approximately $15 Million, consisting of unpaid progress payments, unpaid statutory holdback, and a large delay claim of its own. The lien resulted in the Owner not making further payments to Dominion.

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