Contractors Cannot Lien For Damages: Alberta Master Rules On Proper Subject Matter Of Builders’ Lien

An Alberta master's decision examined the burden of proof in an application to reduce the amount of security posted to discharge a builders' lien, and whether damages – such as losses that may not sufficiently relate to improvements to the land – may also be included in claim for a builders' lien. In Krupp Canada Inc v. JV Driver Projects Inc (Krupp), Master A.R. Robertson held that the applicant bears the burden of proof in applications under section 48 of the Builders' Lien Act (Act) to persuade that a lien should be reduced, even when security is provided. The court went on to find that a lien can only be claimed for work actually done to improve the lands and not for other damages.