ARTICLE · 21 NOVEMBER 2018

Who Owns That School? The Crown And The Validity Of Lien Claims

Cox & Palmer

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As the Province of Newfoundland and Labrador remains a major driver of local construction and development the issue frequently arises as to whether the protections intended by the Mechanics' Lien Act ("MLA") can be extended to these provincial projects.

CanadaLitigation, Mediation & Arbitration

F. Richard Gosse

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Terra Services Inc. v. Her Majesty the Queen 2018 NLSC 221

As the Province of Newfoundland and Labrador remains a major driver of local construction and development the issue frequently arises as to whether the protections intended by the Mechanics' Lien Act ("MLA") can be extended to these provincial projects. As a general rule, the Crown is not subject to the MLA and there is no suggestion that the legislation will be changed anytime soon. Terra Services offers the most recent affirmation of Crown immunity in this area; Justice Frances Knickle extends a logical analysis of the MLA definition of 'Owner', the perfection of a lien claim, and the scope of the MLA's curative provisions in the context of the lien bond and Crown immunity, and appears to close the door on the suggestion that, absent express legislative authority, the Crown could voluntarily submit to the MLA.

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