Lien Claims - Pitfall For The Unwary Lien Claimant

An application was made by the owner of a lodge at Whistler to discharge a $317,000.00 claim of lien filed by a lien claimant.  The owner contended the lien claimant did not correctly name the person who hired the claimant.  The lien claimant named the construction management company as the party they had contracted with.  In fact, the construction contract was with the joint venture owner of the development.  There was no dispute that the lien claimant had filed a lien, in time, against the correct property. 

Mr. Justice Pitfield of the British Columbia Supreme Court determined that the owner was entitled to have the lien discharged from title because the lien claimant had failed to correctly identify the contracting parties.

Mr. Justice Pitfield said: “It is settled law that the Builders Lien Act must be interpreted strictly because it creates a preference in favour of one creditor over another......."The lien is a creature of statute, and the court has no discretion to depart from the statutory requirements."

This decision highlights the importance of correctly identifying not only the property against which a lien claimant wishes to file a claim of lien, but also the correct legal name of the business that a lien claimant contracts with.

The case citation is: Nita Lake Lodge Corporation. v. Conpact Systems (2004) Ltd. 2006 BCSC 885
http://www.courts.gov.bc.ca/Jdb-txt/SC/06/08/2006BCSC0885.htm

For further information you can contact Allan R. Elliott at elliott@pushormitchell.com or any of the other lawyers in the construction law group at Pushor Mitchell LLP.