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ARTICLE · 25 SEPTEMBER 2023

Legal Notes: Correct Names On Both Contracts And Liens Can Save Headaches

Registering a lien under the name of the company contracted to do the work seems straightforward enough. However, when the name on the lien

CanadaReal Estate and Construction

Registering a lien under the name of the company contracted to do the work seems straightforward enough. However, when the name on the lien isn't the same as on the original contract, and the owner claims not to recognize it, can the lien be ruled invalid and any security held in trust returned?

"Blueprint Custom Homes c/o Scott Klippenstein" was hired to build a custom home. A year after work had begun, Klippenstein had not received payment. He registered a lien against the owners. However, he did so under the name of his corporation, Klippenstein Development Corp. (KDC).

The defendants' position was that there was no indication Klippenstein was acting as an agent for KDC when he signed the contract, therefore KDC was not "engaged" by them to perform any work.

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