Robins Appleby

Court of Appeal confirms additional protections for contractors in construction projects: Urbancorp Cumberland 2 GP Inc.

Ellad Gersh and Samuel Mosonyi.

This is a significant decision for contractors and for project owners, particularly in the COVID-19 world, in which the financial viability of construction projects is more and more uncertain.

The Ontario Court of Appeal recently considered protections for contractors in construction projects where the owner becomes insolvent in Urbancorp Cumberland 2 GP Inc. (Re). Specifically, the Court of Appeal considered whether section 9 of the Construction Act applies when the owner becomes insolvent.

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