The Builders' Lien Trust – A Separate Statutory Right

On September 18, 2015, in Stuart Olson Construction Ltd. v Structal Heavy Steel, the Supreme Court of Canada held that builders liens and statutory trusts are separate remedies that exist independently of one another and may be pursued concurrently by a subcontractor pursuant to the terms of the Manitoba Builders Lien Act.¹ One effect of this decision is that a lien bond posted to discharge a lien will not discharge a contractor's trust obligations. Structal has application to all other jurisdictions that employ the concept of a builders' lien trust, including Alberta, Ontario and British Columbia.

Structal, involved a lien dispute between a general contractor and a subcontractor (as opposed to, for example, a lien dispute between an owner and contractor). Stuart Olson was the general contractor for the construction of the Winnipeg Blue Bombers' new football stadium on the University of Manitoba campus. In Decembe 2010, Stuart Olson entered into a subcontract with