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ARTICLE · 23 AUGUST 2023

Understanding The Use Of Lien Bonds On Crown Land

Borden Ladner Gervais LLP
Borden Ladner Gervais LLP
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"Ensuring payment of contractors and subcontractors and encouraging liquidity in the flow of funds to them are both significant preoccupations in the construction industry."

CanadaReal Estate and Construction
Richard Yehia
Richard Yehia
James MacLellan
James MacLellan
Evan Ivkovic
Evan Ivkovic
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"Ensuring payment of contractors and subcontractors and encouraging liquidity in the flow of funds to them are both significant preoccupations in the construction industry." This quote from the Supreme Court of Canada remains as applicable now as it was when we cited it in our previous article, discussing the case of Bird Construction Group v Trotter and Morton Industrial Contracting Inc., 2021 MBQB 233. In that article, we considered the potential adverse effects of the decision on the flow of funds on construction projects on Crown lands, and, respectfully, the errors in the application judge's reasoning.

In Bird Construction Group v Trotter and Morton Industrial Contracting Inc., 2023 MBCA 64, the Manitoba Court of Appeal overturned the decision of the application judge and ruled that lien bonds could be used as security to vacate claims for lien on Crown lands. In doing so, the Court of Appeal provided much needed clarity on the use of lien bonds

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