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

March-31-2006

Lawyer Joseph Cosentino
Area Construction Law

Summary

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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