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ARTICLE · 28 OCTOBER 2026

PPCLA Section 46: No Two-year Trial Deadline Where Lien Is Replaced By Security

Miller Thomson
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The Alberta Court of King's Bench has clarified a critical procedural question in construction lien disputes: does the two-year trial deadline under Section 46(2) of the Prompt Payment and Construction Lien Act apply when a lien has been discharged and replaced by security? This ruling fundamentally changes the strategic landscape for both lien claimants and property owners in Alberta, particularly given that security is posted in the vast majority of lien cases.

CanadaLitigation, Mediation & Arbitration

Does Section 46(2) of the Prompt Payment and Construction Lien Act (“PPCLA”),1 which requires trial within two years of registration of a Certificate of Lis Pendens (“CLP”), still apply when the lien has been discharged and replaced by security?

In 1951789 Alberta Ltd v Britannia Block General Partnership Inc, 2026 ABKB 283 [1951789 Alberta Ltd], the Court of King’s Bench held that it does not. The ruling is significant for most lien disputes in Alberta, given that security is posted in the vast majority of cases.

Background: A $1.4M lien, a bond, and six years of litigation

1951789 Alberta Ltd was an appeal of an Applications Judge’s decision. The parties were involved in a long and complicated construction dispute involving multiple actions, with both sides alleging delay by the other in bringing the matter to trial.2

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