Nature of the Case: Rojda Stucco Ltd seeks to increase the amount held in trust from $54,893.20 to $164,395.75. This amount is in relation to a builder's lien filed under the Builders' Lien Act.
Background:
Rojda was hired by Infiniti Master Builder Inc. to work on a home for the McNeills.
Work was performed from May 2021 to September 2021, with an unpaid invoice of $74,025.
Infiniti went bankrupt.
Rojda claims that the McNeills were supposed to pay the invoice directly.
Legal Focus:
The court needed to determine the appropriate amount to be held in trust.
Section 48(1) of the Act: Allows the court to order security for lien removal, which can be the claim amount or a lesser determined amount.
Section 25 of the Act: Limits the owner’s liability to the major lien fund, as no minor lien fund applies here.
Section 18(4) of the Act: Limits cumulative lien claims to 10% of the work's value plus any unpaid amounts.
Court Decision:
Maximum Liability: Based on payments and work valuation, the McNeills' maximum liability was determined to be $54,893.20.
Ruling: The application by Rojda to increase the trust amount to $164,395.75 was dismissed, as it exceeded the statutory limit of the McNeills’ liability.
