LIENS - Lienable interests - Crown property - Holdback - When applicable

Law360 Canada (August 30, 2023, 6:09 AM EDT) -- Appeal by Bird Construction Group (Bird) from application judge’s order requiring it to deposit cash security into court to vacate first lien. Bird argued that the application judge misdirected himself in finding a lien claimant in respect of Crown land had a charge on cash. The Manitoba Water Services Board (Board) contracted with Bird to construct a wastewater treatment plant project. Bird subcontracted aspects of the project to Trotter and Morton Industrial Contracting Inc. (TMIC). Disputes arose between Bird and TMIC as a result of which TMIC delivered two notices of claim for liens. Bird applied for an order vacating the liens upon deposit into court of lien bonds as security. TMIC resisted Bird’s application with respect to the first lien, asserting a lien bond was not appropriate security in that case. TMIC insisted Bird pay cash into court in the amount of the first lien. The application judge concluded lien bonds were not an acceptable substitute for the cash charged by the liens on the Crown Land Project. He ordered that Bird would be required to deposit cash in the amount of the face value of the first lien with the court at which time the first lien would be vacated....
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