P.P.G. Industries Canada Ltd. v. J.W. Lindsay Enterprises Ltd., Citadel Properties Ltd., Custom Glass (Ontario) Ltd. and Inkan Ltd., (1982) 52 N.S.R.(2d) 267 (CA)

JudgeMacKeigan, C.J.N.S., Jones and Pace, JJ.A.
CourtSupreme Court of Nova Scotia (Canada)
Case DateJune 29, 1982
JurisdictionNova Scotia
Citations(1982), 52 N.S.R.(2d) 267 (CA)

PPG Ind. Can. Ltd. v. Lindsay Ent. (1982), 52 N.S.R.(2d) 267 (CA);

    106 A.P.R. 267

MLB headnote and full text

P.P.G. Industries Canada Limited v. J.W. Lindsay Enterprises Limited, Citadel Properties Limited, Custom Glass (Ontario) Ltd. and Inkan Limited

(S.C.A. No. 00964)

Indexed As: P.P.G. Industries Canada Ltd. v. J.W. Lindsay Enterprises Ltd., Citadel Properties Ltd., Custom Glass (Ontario) Ltd. and Inkan Ltd.

Nova Scotia Supreme Court

Appeal Division

MacKeigan, C.J.N.S., Jones and Pace, JJ.A.

June 29, 1982

Summary:

A general contractor brought a mechanics' lien action against the owner of a building project. The owner issued a defence and counterclaim in excess of $50,000 against the general contractor. The owner also brought an action against a subcontractor for damages and the general contractor made a third party claim against the subcontractor. The subcontractor also issued third and fourth party notices to two of its subcontractors. The Nova Scotia County Court stated a case to the Nova Scotia Court of Appeal to determine whether a counterclaim, set-off and third party notice were permissible under the Mechanics Lien Act, R.S.N.S. 1967, c. 178, and, if so, whether the County Court Monetary Jurisdiction was applicable.

The Nova Scotia Court of Appeal held that third party proceedings were not permissible under the Mechanics' Lien Act, but that counterclaims and set-offs were, provided that they related to the lien claim and arose out of the building contract or work done and materials supplied. In such cases the County Court monetary jurisdiction was inapplicable.

Mechanics' Liens - Topic 4

General principles - Interpretation of mechanics' lien legislation - The Nova Scotia Court of Appeal held that the approach to the interpretation of the Mechanics' Lien Act has been to strictly construe the statutory provisions creating a right to lien - Once the existence of the valid lien is recognized, the applicable procedural provisions are to be liberally construed - See paragraph 19.

Mechanics' Liens - Topic 8008

Practice - General - Availability of counterclaim, setoff and third party procedure - The Nova Scotia Court of Appeal held that third party proceedings were not permissible under the Mechanics' Lien Act, but that counterclaims and set-offs were, provided that they related to the lien claim and arose out of the building contract or work done and materials supplied - In such cases the County Court monetary jurisdiction was inapplicable.

Practice - Topic 9151

Appeals - Stated case - General - The Nova Scotia Court of Appeal held that the issues raised by a stated case under Rule 27 of the Civil Procedure Rules (N.S.) should be clear and the questions responsive to the matters in dispute between the parties - See paragraphs 4 to 7.

Cases Noticed:

St. Boniface v. Marcyniuk et al., 107 D.L.R.(3d) 569, refd to. [para. 6].

Chicago Vitreous (Can.) Ltd. v. Clark, 15 C.P.C. 38, consd. [para. 16].

Halls Associates v. Trident Construction (1968), 69 D.L.R.(2d) 495, consd. [para. 17].

A.P. Green Fire Brick Co. Ltd. v. Interprovincial Steel Corp. Ltd. (1963), 39 D.L.R.(2d) 692, consd. [para. 18].

Anchor Shoring Ltd. v. Halton Region Conservation Authority (1977), 15 O.R.(2d) 599, consd. [para. 18].

Western Caissons (Man.) Ltd. et al. v. Trident Construction Ltd. et al., [1975] 5 W.W.R., consd. [para. 20].

Statutes Noticed:

Civil Procedure Rules (N.S.), rule 1.02 [para. 11]; rule 11.01(1) [para. 12]; rule 14.20 [para. 22]; rule 16 [para. 12].

County Court Act, R.S.N.S. 1967, c. 64, sect. 47 [para. 10].

Judicature Act, S.N.S. 1972, c. 2, sect. 43 [para. 12].

Mechanics' Lien Act, R.S.N.S. 1967, c. 178, sect. 5, sect. 10, sect. 11 [para. 8]; sect. 33(1), sect. 33(2), sect. 33(7), sect. 34(1), sect. 34(4), sect. 45(6) [para. 9].

Authors and Works Noticed:

Holmstead and Gale, Ontario Judicature Act, vol. 2, p. 1036 [para. 6].

Macklem and Bristow, Mechanics' Lien in Canada (4th ed.), pp. 295 [para. 19]; 309 [para. 15].

Supreme Court Practice (1976), vol. 1, p. 527 [para. 6].

Counsel:

J.C.K. Stobie, for appellant;

D.J. Ring, for respondent J.W. Lindsay Enterprises Limited;

G.W. MacDonald, for respondent Citadel Properties Limited;

R. Murrant, for respondent Custom Glass (Ontario) Ltd.;

S.B. Outhouse, for respondent Inkan Limited.

This case was heard on April 1, 1982, at Halifax, Nova Scotia, before MACKEIGAN, C.J.N.S., JONES and PACE, JJ.A., of the Nova Scotia Supreme Court, Appeal Division.

On June 29, 1982, JONES, J.A., delivered the following judgment for the Appeal Division:

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