Expiry Of Lien Security For Failure To Enforce

In the recent case of 1951789 Alberta Ltd. v. Britannia Block General Partnership Inc.,¹Applications Judge Farrington made the decision to release the alternate security paid into court by the defendant pursuant to section 46 (2) of the Prompt Payment and Construction Lien Act (the "PPCLA").²

This decision is one of few where courts have enforced the PPCLA's timelines for the trial of a lien and provides useful guidance for both lienholders and parties who are responding to a lien.

Alternate security, often in the form of cash or a bond, can be paid into court to have a construction lien removed from a certificate of title. Section 46(2) of the PPCLA permits a party to apply to have a certificate of pending litigation ("Certificate") vacated and the lien associated with it discharged where no trial has been held within two years from the date of registration of the Certificate. This decision clarifies that Section 46(2) applies not only to a construction lien