USCAN Aviation Sales Ltd. v. Mansfield Heliflight Inc.
USCAN Aviation Sales Ltd.
Law Firm / Organization
Not Specified
Lawyer(s)

John Ritchie

Mansfield Heliflight Inc.
Law Firm / Organization
McMillan LLP
Lawyer(s)

Madeline Klimek

Background

  • In 2008, Mansfield hired USCAN to repair a Bell 412 helicopter.
  • Work was halted in February 2009, but USCAN continued repairs.
  • Mansfield disputes owing any further payments and seeks the helicopter’s return.
  • USCAN claims a possessory lien under the Repair and Storage Lien Act (RSLA).

Motions and Court Findings

  1. Mansfield’s Motion for Security for Costs ($151,331.80)Dismissed

    • Mansfield argued USCAN lacked Ontario assets to cover costs.
    • USCAN claimed a receivable of $430,000 USD but had no other assets.
    • Mansfield conceded some payment was owed for pre-2009 labor.
    • The court ruled the claim had a reasonable chance of success, making security unjust.
  2. USCAN’s Motion for Possessory LienGranted

    • Mansfield admitted pre-2009 work was authorized and unpaid.
    • Based on Swan (2024 ONCA 35), the RSLA grants a lien until amounts are determined.
    • However, USCAN cannot sell or dispose of the helicopter pending final determination.
  3. USCAN’s Motion for Mansfield to Post $150,000 SecurityDismissed

    • Rule 45.03 applies only when security releases property, not when possession continues.

Final Order

  • USCAN retains a possessory lien but cannot dispose of the helicopter.
  • No security for costs or additional payment into court required.
  • The court urged a quick resolution due to the helicopter’s low value.
Superior Court of Justice - Ontario
CV-18-00000279-0000
Corporate & commercial law
Plaintiff