Courts have the discretion to determine the security
amount required to vacate a lien, which can be less than the
claimed lien amount. In a recent BC case, a lien was allowed to be
vacated by posting security for half of the disputed amount, due to
insufficient evidence supporting the contractor's additional
fee claims. This approach is consistent across various Canadian
provinces, such as Alberta, where courts have also permitted liens
to be discharged for lesser amounts. The case also underscores the
risks of informal, text message-based contracts that lack clarity
in work scope and payment terms. Properly drafted contracts can
prevent costly disputes and save time.
The value of work performed is a common dispute between an owner
and a contractor. When the contract between the parties is a series
of disjointed text messages, a dispute about the value or scope of
work is almost inevitable. While the court can vacate a lien upon
posting security into court, an owner