Securing Liens: Alberta Court Of King's Bench Confirms Enforcement Timelines When Posting Security

In Lesenko v Wild Rose Ready Mix Ltd, 2024 ABKB 333, the Alberta Court of King's Bench (the "Court") confirmed that when security is paid into court and a lien is removed from the title to property, the lien does not cease to exist as a result of failing to take action to realize the lien within the 180-day time limit set forth in section 43(1) of the Prompt Payment and Construction Lien Act, RSA 2000, c P-26.4 (the "PPCLA").

This decision invalidated the 180-day deadline in the template Consent Order used since 2017. As a result, the only way to set a deadline for the lien claimant to commence an action is now a Notice to commence action under section 45 of the PPCLA, which provides a 30-day deadline. Consequently, more Notices to commence action might be issued to enforce proceedings promptly.