Key Facts:

• Issue: Payment dispute under Ontario’s Construction Act.

  • Dalren sought payment of:
    • A final invoice for $44,673.
    • A holdback of $433,885 retained by Loadstar per the Act.
  • The Respondents argued these amounts were not payable under the new "prompt payment" provisions.

• Timeline:

  • December 2017: Dalren proposed to build a facility for Loadstar on a different site.
  • December 2020: A formal contract was signed for construction on Dodge Street.
  • October 31, 2022: Final invoice and holdback invoice issued.
  • November 17, 2022: Payment Certifier certified the invoices as payable.
  • Respondents refused to pay, citing deficiencies and the inapplicability of the prompt payment provisions.

Legal Issues:

1. Applicability of Prompt Payment Provisions:

   • Dalren argued these provisions required immediate payment.
   • Respondents contended that the provisions didn’t apply because the procurement process began before July 1, 2018, exempting them under the transitional provisions of the Act.

2. Transitional Provisions of the Act:

   • Section 87.3 outlines conditions under which older provisions of the Act apply.

Court’s Analysis:

• The procurement process began in December 2017 with the proposal by Dalren, predating July 1, 2018.
• The procurement process covered the same improvement, despite changes in location.
• The Respondents were deemed “owners” under the Act, despite not owning the Dodge Street property during initial negotiations.
• As the procurement process began before the critical dates in the transitional provisions, the prompt payment provisions did not apply.

Decision:

• The court dismissed Dalren’s application. The Respondents were not obligated to pay under the prompt payment provisions.
• No monetary awards were granted.