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ARTICLE · 23 OCTOBER 2023

Lien On Me: Consequences Of Excessive Liens

Courts have the discretion to determine the security amount required to vacate a lien, which can be less than the claimed lien amount.

CanadaReal Estate and Construction

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

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