{"id":35480,"date":"2025-07-16T15:22:42","date_gmt":"2025-07-16T19:22:42","guid":{"rendered":"https:\/\/www.millerthomson.com\/?p=35480"},"modified":"2025-10-23T11:33:30","modified_gmt":"2025-10-23T15:33:30","slug":"no-excuse-for-delay-you-risk-losing-your-lien-and-being-left-unsecured","status":"publish","type":"post","link":"https:\/\/www.millerthomson.com\/en\/insights\/construction-and-infrastructure-law\/no-excuse-for-delay-you-risk-losing-your-lien-and-being-left-unsecured\/","title":{"rendered":"No excuse for delay? You risk losing your lien and being left unsecured"},"content":{"rendered":"\n

Getting to trial on construction matters can be a long and arduous journey, but the ability to place a lien charge on a property can provide the claimant with security through that process \u2013 or can it? In 1951789 Alberta Ltd v Britannia Block General Partnership Inc <\/em>(\u201cBritannia Block<\/em><\/strong>\u201d),[1]<\/a> Applications Judge J.R. Farrington of the Alberta Court of King\u2019s Bench (the \u201cCourt<\/strong>\u201d) rendered a decision that could impact how secure a lien actually remains over time.<\/p>\n\n\n\n

Background of Britannia Block<\/em><\/h2>\n\n\n\n

The plaintiff placed a lien on the defendant\u2019s land and subsequently commenced an action and filed a certificate of lis pendens in June 2020.[2]<\/a> In late July 2021, the defendant obtained a consent order to remove the lien and certificate of lis pendens in exchange for posting a bond as security in the amount of $1,595,842.50, as permitted by section 48 of the Prompt Payment and Construction Lien Act <\/em>(the \u201cPPCLA<\/em><\/strong>\u201d).[3]<\/a> The procedural record since the posting of the security is somewhat unclear, with the Court noting that a summary judgment application had been filed but not heard, and that there was some dispute regarding the answering of questions.[4]<\/a> It is also unclear whether any document production or questioning for discovery had occurred.<\/p>\n\n\n\n

This decision arose from the defendant\u2019s application in July 2024 to release or reduce the amount of the security it had posted.[5]<\/a> Applications Judge Farrington found two potential bases on which a release or reduction of the security might be available. [6]<\/a><\/p>\n\n\n\n

The first basis: The merits of the case<\/h2>\n\n\n\n

First, the Court considered whether the facts justified a reduction in the amount based on the merits of the case. Because the decision to allow the bond to stand in place of the land was made by consent, the merits had not previously been adjudicated. A contentious aspect of the plaintiff\u2019s claim was $801,576.27 pertaining to a significant delay claim.[7]<\/a> Applications Judge Farrington noted that, while construction lien jurisprudence has occasionally allowed liens for delay claims, in this case, the delay claim was supported by expert evidence and may ultimately be found to be valid.[8]<\/a> The Court also remarked that the inclusion of the delay claim in the lien was not specious.[9]<\/a><\/p>\n\n\n\n

The Court noted that this was not the appropriate forum to decide the issue, and that the evidence at this stage did not support reducing or releasing the security on this basis alone.[10]<\/a><\/p>\n\n\n\n

The second basis: Section 46(2) of the PPCLA<\/em><\/h2>\n\n\n\n

Second, the Court considered whether delays in enforcing the process, along with the alleged unfairness and expense to the defendant resulting from the continued posting of the security, justified its reduction or release. Section 46(1) of the PPCLA<\/em> provides that where a certificate of lis pendens has been registered on a lien, the lien continues to exist until the later of: (a) the conclusion of the proceedings; or (b) the removal of the certificate of lis pendens.[11]<\/a> Notably, section 46(2) states that, regardless of section 46(1), if a trial has not occurred within two years of the certificate\u2019s registration, any interested party may apply to the Court to have it vacated and the lien discharged.[12]<\/a> The Court found that security posted pursuant to section 48 engages section 46 of the PPCLA<\/em>.[13]<\/a><\/p>\n\n\n\n

The Court noted that while liens offer powerful security for otherwise unsecured claims, they impose a cost on the party defending the lien claim \u2013 whether through the loss of financial use of the land, the money paid into Court, or the premiums required to post a bond (in this case, approximately $100,000 at the time of the hearing).[14]<\/a> The Court held that a party posting security cannot be expected to accrue such costs indefinitely.[15]<\/a> The tradeoff for the benefit of security is an obligation to pursue lien claims promptly.[16]<\/a><\/p>\n\n\n\n

The Court\u2019s reasoning in Britannia Block<\/em><\/h2>\n\n\n\n

Ultimately, the Court found that, in the circumstances of this case, it was appropriate to apply section 46 to release the security for the lien and directed that the proceedings continue as an unsecured claim.[17]<\/a><\/p>\n\n\n\n

The Court observed that the matter was \u201csignificantly past the two-year mark\u201d and nowhere near trial.[18]<\/a> Citing 1361556 Alberta Ltd v Ristorante Cosa Nostra Inc<\/em>,[19]<\/a>\u00a0the Court noted that the two-year period in section 46(2), while not mandatory, serves as a target \u2013 one with potential consequences for failing to meet it, albeit on a discretionary basis.[20]<\/a> The Court further noted that, as held in Ristorante<\/em><\/strong>, the lien claimant bears the burden of explaining the delay; while the explanation requirement is not onerous, it must still be satisfied.[21]<\/a> Notably, Applications Judge Farrington did not provide reasons detailing any explanation from the plaintiff regarding the delay, suggesting that none was given.<\/p>\n\n\n\n

Key takeaways for parties to a lien claim<\/h2>\n\n\n\n

This decision serves as a reminder to lien claimants to take active steps to advance their lien claims toward resolution in a timely manner. Practitioners should view this decision as a strong cautionary note when dealing with lien claims \u2013 an area already fraught with errors.<\/p>\n\n\n\n

Practically speaking, liens typically occur in the context of complex construction disputes that warrant document discovery and questioning. It appears that these steps did not occur in this case, and in fact, the PPCLA<\/em> does not expressly contemplate these steps in lien proceedings. Specifically, section 53(3)(f) of the PPCLA<\/em> provides that questioning is not to occur without a court order. Nonetheless, it is not uncommon for parties to proceed with questioning without obtaining the necessary order. It is also common for liens to be filed while the dispute is determined through arbitration, in which case the court proceeding is either formally or informally stayed in favour of the arbitration. In the author\u2019s view, lien claimants would be well advised to proactively seek these types of orders, and in doing so, ensure that any delay is clearly documented and explained to the court.<\/p>\n\n\n\n

If you require support in navigating a construction lien dispute, whether you are bringing a claim or defending against one, Miller Thomson\u2019s Construction and Infrastructure<\/a> team can provide strategic, practical advice. Our professionals are ready to assist you in ensuring your rights are protected.<\/p>\n\n\n\n

\n\n\n\n

[1]<\/a> 2025 ABKB 324<\/a> [Britannia Block<\/em>],<\/p>\n\n\n\n

[2]<\/a> Ibid<\/em> at para 17.<\/p>\n\n\n\n

[3]<\/a> RSA 2000, c P-26.4<\/a> [PPCLA<\/em>].<\/p>\n\n\n\n

[4]<\/a> Britannia Block<\/em> at para 17.<\/p>\n\n\n\n

[5]<\/a> Ibid<\/em> at para 2.<\/p>\n\n\n\n

[6]<\/a> Ibid<\/em> at para 3.<\/p>\n\n\n\n

[7]<\/a> Ibid <\/em>at para 4.<\/p>\n\n\n\n

[8]<\/a> Ibid<\/em> at para 7.<\/p>\n\n\n\n

[9]<\/a> Ibid<\/em> at para 9.<\/p>\n\n\n\n

[10]<\/a> Ibid<\/em>.<\/p>\n\n\n\n

[11]<\/a> PPCLA<\/em>, s 46(1).<\/p>\n\n\n\n

[12]<\/a> Ibid<\/em>, s 46(2).<\/p>\n\n\n\n

[13]<\/a> Britannia Block<\/em> at para 15.<\/p>\n\n\n\n

[14]<\/a> Ibid<\/em> at para 16.<\/p>\n\n\n\n

[15]<\/a> Ibid<\/em>.<\/p>\n\n\n\n

[16]<\/a> Ibid.<\/em><\/p>\n\n\n\n

[17]<\/a> Ibid<\/em> at para 22.<\/p>\n\n\n\n

[18]<\/a> Ibid<\/em> at para 18.<\/p>\n\n\n\n

[19]<\/a> 2021 ABQB 157<\/a> [Ristorante<\/em>],<\/p>\n\n\n\n

[20]<\/a> Ibid<\/em> at para 19.<\/p>\n\n\n\n

[21]<\/a> Ibid<\/em> at para 21, citing Ristorante<\/em> at para 36.<\/p>\n","protected":false},"excerpt":{"rendered":"

Getting to trial on construction matters can be a long and arduous journey, but the ability to place a lien charge on a property can provide the claimant with security through that process \u2013 or can it? In 1951789 Alberta Ltd v Britannia Block General Partnership Inc (\u201cBritannia Block\u201d),[1] Applications Judge J.R. Farrington of the […]<\/p>\n","protected":false},"author":122,"featured_media":25538,"parent":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[539],"insight-format":[416],"class_list":["post-35480","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-construction-and-infrastructure-law"],"acf":[],"yoast_head":"\nConstruction liens in Alberta: You risk losing your lien for trial delays under PPCLA<\/title>\n<meta name=\"description\" content=\"In Britannia Block, the Alberta Court of King\u2019s Bench clarified how long lien security remains valid under the PPCLA, warning claimants that delays in advancing proceedings could result in the release of security and the loss of lien protection.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.millerthomson.com\/en\/insights\/construction-and-infrastructure-law\/no-excuse-for-delay-you-risk-losing-your-lien-and-being-left-unsecured\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Construction liens in Alberta: You risk losing your lien for trial delays under PPCLA\" \/>\n<meta property=\"og:description\" content=\"In Britannia Block, the Alberta Court of King\u2019s Bench clarified how long lien security remains valid under the PPCLA, warning claimants that delays in advancing proceedings could result in the release of security and the loss of lien protection.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.millerthomson.com\/en\/insights\/construction-and-infrastructure-law\/no-excuse-for-delay-you-risk-losing-your-lien-and-being-left-unsecured\/\" \/>\n<meta property=\"og:site_name\" content=\"Miller Thomson\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/MillerThomsonLaw\/\" \/>\n<meta property=\"article:published_time\" content=\"2025-07-16T19:22:42+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2025-10-23T15:33:30+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.millerthomson.com\/wp-content\/uploads\/2025\/01\/insights_construction_safety.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"1776\" \/>\n\t<meta property=\"og:image:height\" content=\"991\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Sebastian Vives\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@millerthomson\" \/>\n<meta name=\"twitter:site\" content=\"@millerthomson\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Sebastian Vives\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"6 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\/\/www.millerthomson.com\/en\/insights\/construction-and-infrastructure-law\/no-excuse-for-delay-you-risk-losing-your-lien-and-being-left-unsecured\/#article\",\"isPartOf\":{\"@id\":\"https:\/\/www.millerthomson.com\/en\/insights\/construction-and-infrastructure-law\/no-excuse-for-delay-you-risk-losing-your-lien-and-being-left-unsecured\/\"},\"author\":{\"name\":\"Sebastian Vives\",\"@id\":\"https:\/\/www.millerthomson.com\/en\/#\/schema\/person\/be05481ca4ee617c24b33993ade4c881\"},\"headline\":\"No excuse for delay? 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