Payment bonds come in various shapes and sizes and it is important to read them carefully before concluding what they bond. They may not just bond the payment obligation of the party obtaining the bond. They may also bond the payment obligations of all persons on the project. If they do the latter, then the […]
Continue Reading →Can A Payment Bond Impose Double Payments On A Contractor?
Posted by: Construction Law Canada
What Is The Priority Between Building Mortgages And Construction Liens In Respect Of Holdback Amounts Greater Than The Statutory Holdback?
Posted by: Construction Law Canada
The priorities between lienholders and mortgagees under the Construction Lien Act are not easy to understand. They are even more difficult to understand and apply when the owner holds back more than the statutory minimum, and when the liens are discharged by security provided by the owner or mortgagee. Under sub-section 44(1) of the Act, […]
Continue Reading →What Mortgage Payments Are “Advances” That Have Priority Over Lien Claims?
Posted by: Construction Law Canada
A recurring issue for construction and builders liens is whether the liens have priority over mortgage advances. One question which does not often arise is: what sort of payments by a mortgagee do constitute “advances” under a mortgage? In other words, what sort of payments by a mortgagee can even qualify for priority over lien […]
Continue Reading →Can Money Paid Into Court Be Used To Discharge Other Liens?
Posted by: Construction Law Canada
When a contractor pays money into court to discharge a lien of a sub-contractor, can that money only be used to discharge that lien holder’s claim? Or is it available to pay the liens of all eventual lien holders? In Canadian Western Bank v. 702348 Alberta Ltd., the Alberta Court of Queen’s Bench recently decided […]
Continue Reading →The Equitable Doctrine of Marshalling Applies To Construction Liens
Posted by: Construction Law Canada
Construction Law – Construction liens – Marshalling The Construction Lien Act seems to be a world unto itself, unaffected by the general principles of law. But the recent decision of the Alberta Queen’s Bench in Gerrow v. Dorais reminds us that a construction lien is one form of secured interest. The lien is therefore subject […]
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