Holding back on holdbacks: ONCA confirms when construction lenders rank ahead of lien claimants in priority disputes

Alexandra Shelley, David Outerbridge, Shalom Cumbo-Steinmetz and Adam Slavens of Torys explain that the Ontario Court of Appeal recently confirmed that, where there are no subcontractor lien claims, contractor lien claimants have priority over a construction lender only for holdbacks calculated against unpaid invoices rather than the total value of all invoices, preserving the Construction Act’s balance between lien claimants and mortgagees and avoiding double recovery.

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