The line between what work gives rise to a valid builders'
lien, and that which doesn't, can be blurry. The recent
decision of YoungEnergyServe Inc. v LR Ltd, LR Processing
Partnership, 2021 ABQB 101, has set out a framework for
determining when a builders' lien is valid.
In that case, YESCo contracted with LR to clean, repair, and
reline the interior of all of the tanks and pressure vessels at
LR's Mazeppa Gas Plant in High River. YESCo alleged that it was
owed $1.7 million for its work, registered and filed a
builders' lien against LR's lands. The Court ruled that the
lien was invalid.
Builder's Liens Must be an "Improvement"
The validity of YESCo's lien depended on whether its work
was done in respect of an "improvement" or was simply
maintenance. Section 6 of the Builders' Lien Act
(the BLA) entitles a person to a lien where that person
has worked on or contributed material in respect of an
"improvement" on that land. Section 1 of the
BLA defines
