Creditor’s claims were lienable

Ontario civil | Bankruptcy and Insolvency

Administration of estates

Creditor’s claims were lienable

Creditor provided materials and services pursuant to lawn maintenance contracts. Creditor filed two construction liens. Creditor filed proof of claim claiming secured claim. Monitor provided notice of revision and disallowance. Monitor allowed creditor’s claim as unsecured pre-filling claim. Creditor delivered dispute notice. Parties disputed whether materials and services provided by creditor could be subject of lien under Construction Lien Act (Ont.). Monitor referred creditor’s dispute to claims officer. Dispute allowed. Creditor’s claims were lienable. Creditor’s claim was allowed as secured pre-filling claim. Black soil and mums added to land were improvements by way of alteration and addition to land and fell within definition of improvement in Act. Addition to land that enhanced land by vegetation control was improvement by way of alteration and addition to land. Removal of vegetation and dirt was alteration and repair to land and supply of gravel and cloth amounted to supply of materials to effect improvement by way of alteration to land. Grounds keeping was improvement by way of alteration and repair of land.
U.S. Steel Canada Inc., Re (May. 24, 2016, Ont. S.C.J. [Commercial List], Julian Polika Claims O., CV-14-10695-00CL) 269 A.C.W.S. (3d) 621.


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