Arbitration Clauses And Lien Rights

Lien rights can't be enforced through arbitration, but many construction contracts provide for mandatory arbitration. In a recent decision, West Coast Installations, Inc. v. Frazier Industrial Co., the Alberta Court explained how arbitration clauses and liens can co-exist. This is not new law, but it is useful clarification of an issue that comes up time and again.

Arbitration Clauses

Many construction contracts provide that the parties choose to resolve their disputes outside of court, usually by arbitration. The courts will give effect to these agreements – that is, a party who has agreed to resolve a dispute by arbitration may find his case thrown out if he tries to proceed instead by way of a lawsuit.