Security for Costs in Builders Lien Claims
In a recent decision the B.C. Court of Appeal has upheld a Supreme Court decision doing away with the requirement to post security for costs when an application is made to discharge a builder’s lien from title to lands.
Section 24 of the Builders Lien Act provides a mechanism for an owner of land to remove a builder’s lien that has been filed against his property by giving security. Most often this is accomplished by the owner paying into court the amount claimed in the lien. It was a long held practice in British Columbia that in addition to the amount of the lien the court also required the owner to pay an additional 10-15% of the amount of the lien as security for the lien claimant’s legal costs. In Tylon Steepe Homes Ltd. v. Pont 2009 BCSC 253 the court decided that with changes to the wording of the legislation this practice was no longer required. The trial decision was recently upheld by our Court of Appeal.