Alberta Court Decision Extinguishes Lien Security For Failure To Enforce The Lien Within Two Years

The Alberta Court of King's Bench recently decided in 1951789 Alberta Ltd v Britannia¹ that lienholders who fail to advance their claim within the two-year period prescribed by the Prompt Payment and Construction Lien Act
("PPCLA")² risk having the lien's security released. Their decision is unusual, as few courts have ever enforced the PPCLA's timelines for holding a trial of the lien.

Release of the lien security effectively extinguishes the lienholder's secured interest, reduces the claim to an unsecured debt, and impairs the claimant's ability to collect outstanding amounts or enforce a judgment, as they no longer benefit from the legal and financial protections afforded by a registered lien.