PUBLICATIONS

In the construction industry, where a tangled web of inter-related contracts can be the norm, questions often arise as to whether a non-party seeking to avail themselves of benefits in one contract is also subject to its various restrictive covenants. In the Husky case discussed below, the ABKB clarified that parties take the good and they take the bad.

This past month, the Ontario Court of Appeal released its decision of Demme v. Healthcare Insurance Reciprocal of Canada (HIROC) 2022 ONCA 503, which considered a commercial liability insurer's duty to defend in actions based on the tort of intrusion upon seclusion. Justice Brown ultimately found that the insurer had a right to deny coverage to an employee of the insured under its policy.

You're walking to grab a bite to eat from your favourite sushi place down the street. It's a warm, clear night and you pass the local businesses which give your neighbourhood its sense of character. An organic coffee shop. A marijuana dispensary. A vintage bookstore. Another dispensary. Maybe the grocer has those strawberries you like. Yeah, that sounds good. Yet another dispensary. A fourth dispensary. A fifth dispensary – this one with a clever name. Were there always this many?

Recently, the Ontario Government has been working toward enacting an overhaul of the Construction Act in hopes to modernize the legislation. The transition rules for these changes are set out in section 87.3 of the amended legislation. As of July 1, 2018, amendments to the construction lien and holdback rules came into effect. A new round of changes are now about to come into effect on October 1, 2019, pertaining to the prompt payment and adjudication process, and amendments related to liens.

The Construction Lien Act can be a daunting piece of legislation to approach. Combining tight deadlines, technical definitions, and a sometimes complex interplay between its own provisions, it is no wonder that it is often viewed with some trepidation by lawyers and clients alike. 

At the beginning of May, the Ontario Court of Appeal released its decision in MacKay v Starbucks.1 At issue was the question of whether a private business owner could be held to be an occupier of otherwise public land outside of its establishment. Though it has always been clear that an individual or company is typically responsible for hazards present on their own property, MacKay introduces the potential for even greater liability for business owners under the Occupiers' Liability Act (“the Act”).

On April 30, 2016, an expert review of Ontario's Construction Lien Act was submitted to the Ministry of the Attorney General and the Ministry of Economic Development, Employment, and Infrastructure. This review, which was just released to the public, contains recommendations which will be considered in drafting legislation to be presented in Spring 2017. If the recommendations are implemented, even in part, it would form a sea of change in construction law and the most significant reform to this area of law in 33 years.

While the review recommends a reform to virtually every aspect of the Construction Lien Act, some of the most remarkable recommendations are as follows: