Is Lien Validity Subject To A Mandatory Arbitration Clause In A Contract?

In British Columbia, the Builders Lien Act provides security to contractors and suppliers by allowing them to place a lien on a property for unpaid work or goods. A recent BC court case addressed whether the validity of such a lien, challenged as being filed late, should be resolved by a court or through arbitration, as specified in a contract. The court decided that lien validity is a pure legal question and falls within the court's jurisdiction, not arbitration. This decision aligns with similar legal principles in Alberta's construction lien legislation.

The purpose of British Columbia's Builders Lien Act is to provide security to contractors and suppliers who work on a project by regulating when a charge may be placed on a property by those who have supplied work or goods. Many construction contracts also provide that disputes must be dealt with via arbitration, rather than the courts. When disputes on lien validity arise, which body has jurisdiction to hear