Background: Draycor Construction Ltd. and McCallum Developments Inc. filed a petition seeking the cancellation of a lien filed by Mazzei Electric Ltd. under the Builders Lien Act (BLA). The lien was initially discharged upon McCallum posting $391,870.68 as security.

Legal Issues:

1. Lien Validity:
   Draycor and McCallum argued that the lien was not filed within the time limits set by the BLA, making it void. They sought to have the lien extinguished and the security returned.

2. Arbitration Clause:
   Mazzei Electric requested a stay of the petition, citing an arbitration clause in their subcontract. They claimed the dispute over the lien's validity was tied to the underlying contract and should be resolved through arbitration.

Court’s Decision: The court found that the issue of the lien’s timing was a matter of law under the BLA, not the subcontract. Since the dispute did not involve the interpretation or application of the subcontract, the court ruled it was outside the scope of the arbitration agreement.

Outcome: The court dismissed Mazzei Electric's application for a stay of proceedings. Draycor Construction Ltd. and McCallum Developments Inc. were awarded costs of the application, to be determined in the overall case.