Ontario Divisional Court Further Clarifies the Role and Jurisdiction of an Adjudicator under the Construction Act

  • November 14, 2022
  • Sahil Shoor and Michael Piaseczny

On October 4, 2022, the Ontario Divisional Court in Pasqualino v. MGW-Homes Design Inc., 2022 ONSC 5632 (“Pasqualino”) further defined the scope of an adjudicator’s role and jurisdiction under the Construction Act. In Pasqualino, the Court dismissed a motion for judicial review to set aside an adjudicator’s determination.

Background

The plaintiff, Domenic Pasqualino (“Mr. Pasqualino”), entered into a fixed-price contract with MGW-Homes Design Inc. (“MGW”) to perform certain renovations to Mr. Pasqualino’s home.

In late 2021, a dispute arose between the two parties and MGW registered a lien on Mr. Pasqualino’s home property in the amount of $169,184.94.  MGW issued a Statement of Claim shortly thereafter. In response, Mr. Pasqualino obtained an order vacating the lien by posting $211,481.18 as security with the Ontario Superior Court. Mr. Pasqualino then issued his Statement of Defence and Counterclaim.

In further response to Mr. Pasqualino’s actions, MGW filed a Notice of Adjudication as set out under the Construction Act. Mr. Pasqualino agreed to the adjudication and both parties participated in the adjudication process. In early 2022, the adjudicator determined that Mr. Pasqualino pay $119,314.00 to MGW, inclusive of Harmonized Sales Tax.

Mr. Pasqualino did not pay MGW in response to the adjudicator’s decision and therefore sought judicial review to set it aside.