Building Contract-Novation

Building Contract-Novation:  Novation of a construction contract may occur if:  the new debtor assumes complete liability; the creditor accepts the new debtor as principal debtor and not merely as an agent or guarantor; and the creditor accepts the new contract in full satisfaction and substitution for the old contract. On the proper reading of a Tripartite Agreement between the City of Edmonton, Trans Alta and the subcontractor to Trans Alta, novation had occurred, the City stepped into the shoes of Trans Alta and was therby precluded from bringing a negligence claim against the subcontractor:  Edmonton (City) v. Trans Alta Energy Marketing Corporation, 2009 ABQB 709

Unjust Enrichment-Construction lien action

Unjust Enrichment-Construction lien action:  If a construction lien claim is struck down because the claim does not meet the technical requirements of the Construction Lien Act, a personal claim in unjust enrichment may be made if it arises out of the same circumstances as the lien: Juddav Designs Inc. v. Cosgriffe, 2010 ONSC 6597

Unjust Enrichment

Unjust EnrichmentConstruction lien action:  A supplier cannot assert an unjust enrichment claim against an owner, particularly if the contractor has asserted a construction lien claim.  The contract between the owner and the contractor is a juristic reason for the unjust enrichment claim being disallowed, and the absence of any dealings between the owner and the supplier and the purposeful decision by the supplier not to participate in the lien action contradict the assertion of any reasonable expectation that the supplier would have a claim in unjust enrichment: Barrie Trim v. Heath et al, 2010 ONSC 2107. See CBC, Chapter 4, part 4.

Unjust Enrichment-Construction lien action:  If a construction lien claim is struck down because the claim does not meet the technical requirements of the Construction Lien Act, a personal claim in unjust enrichment may be made if it arises out of the same circumstances as the lien: Juddav Designs Inc. v. Cosgriffe, 2010 ONSC 6597  https://bit.ly/ibs1TD

Construction Lien Action – Summary Judgment

Leave to bring a summary judgment motion can be granted under s. 67(1) of the Ontario Act in a construction lien action;

6007325 Canada Inc. v. LPQ 18 Yorkville Avenue Inc. and Great Gulf (Yorkville) Ltd., 2010 ONSC 2844