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ARTICLE · 28 DECEMBER 2023

How Much Is Too Much: Extraordinary Remedies For Excessive Liens

Determining the proper amount of a builders' lien routinely arises in construction law proceedings. In certain circumstances, there may be no basis to support an excessive lien amount...

CanadaReal Estate and Construction

Determining the proper amount of a builders' lien routinely arises in construction law proceedings. In certain circumstances, there may be no basis to support an excessive lien amount, which could ultimately bring the matter before a court to decide whether the lien should be reduced or cancelled. The BC Court of Appeal recently found that excessive liens may be justifiably reduced or outright cancelled.


The appellant contractor, Darwin, entered into a standard form contract with the respondent real estate developers, PC Urban, for a multi-phase residential townhouse project in North Vancouver. The contract price totalled $15,958,282.79, inclusive of taxes. It also stipulated that defective work was to be corrected at Darwin's expense and that work would be substantially completed by March 13, 2020. PC Urban paid Darwin $14,004,124.84, inclusive of taxes and a holdback, for work done on the project, giving rise to a dispute over whether PC Urban

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