Overview: BDA Inc. sought to replace a construction lien bond. High Tech Power Inc. agreed to reduce the bond but disputed the amount. High Tech obtained an adjudication for $316,960.26 but claims a lien amount of $419,395.24 and plans to pursue the full amount at trial.

Key Points:

• Funds in Trust: BDA paid the adjudicated amount to its lawyers. $161,037.68 was released for a union debt, while $155,922.58 remains in trust due to a Westport Insurance claim.
• Dispute: BDA argued for bond reduction based on the full adjudicated payment. High Tech argued only the consented payout should reduce the bond as the remaining funds were not paid to High Tech.

Court’s Findings:

• Funds held by lawyers are not considered paid to High Tech.
• The Construction Act aims to ensure money flows within construction projects, not held in trust accounts.
• Payment to a lawyer’s trust account is not equivalent to payment to the lien claimant.

Decision:

• The bond should be reduced only by the amount paid out with High Tech's consent.
• BDA must post a lien bond of $322,946.95.
• High Tech was awarded costs of $4,388 + HST.

Conclusion: The court ruled that trust-held funds do not count towards bond reduction unless directly paid to the claimant, maintaining the Construction Act’s intent to ensure financial fluidity in construction projects.