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ARTICLE · 27 JULY 2023

Lien Bonds Are As Good As Cash

Field Law
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The Manitoba Court of Appeal reversed a chambers Justice's decision which held that a lien bond was not as good as cash for vacating liens on a Crown project.

CanadaReal Estate and Construction
Anthony Burden
Anthony Burden
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The Manitoba Court of Appeal reversed a chambers Justice's decision which held that a lien bond was not as good as cash for vacating liens on a Crown project. In doing so, the Court of Appeal noted that in situations where neither the creditworthiness of the surety nor the wording or conditions attached to the proposed lien bond are argued, lien bonds are as good as cash for vacating a builders' lien.

The Court noted that lien bonds are adequate substitute security and offer a practical solution to allow liens to be vacated in a manner that promotes business efficacy and accords with the aims and purposes of lien legislation.

Bird was the general contractor in the construction of a wastewater treatment plant being built on Crown lands for the City of Selkirk. Trotter & Morton was the major subcontractor on the project.

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