Key Issues:

• KCL sought a court order declaring that the construction liens registered by the Plaintiffs (HVAC Depot and Emco) had expired and were therefore invalid.
• KCL also requested the return of the security it had posted for the discharge of these liens.

Background:

• The liens were filed by HVAC Depot and Emco for materials supplied to a construction project managed by Global HVAC, subcontracted by KCL.
• HVAC Depot and Emco registered their liens on the 56th day after their last supply of materials. The critical legal question was whether the old Construction Lien Act (CLA) or the updated Construction Act (CA) applied to this case.

Legal Analysis & Decision:

• Under the old CLA, liens had to be registered within 45 days, while the new CA extends this to 60 days.
• The court analyzed whether the transition provisions of the new CA applied, specifically focusing on whether contracts or procurement processes began before July 1, 2018.
• It was determined that the entities involved (Rose Corp. and Rose ACQ) did not have an interest in the property prior to July 1, 2018, which meant they could not trigger the transition provisions requiring the old, shorter lien timelines.
• The court found that since the Plaintiffs registered their liens within the 60-day period specified by the new CA, the liens were valid.

Outcome:

• The motion by KCL to dismiss the liens was denied. The Plaintiffs' liens were preserved correctly under the updated Construction Act.
• No monetary award specified.