Legal Blog

Lien Tenant

Construction liens are another minefield for the unwary. The lien claimants and their lawyers realised this in Williams & Prior Ltd. v. Taskon Construction Ltd. [2003] O.J. No. 498, a decision of Master Sandler.

A lien claim must set out the name of the owner. If the lien claim is against the leasehold interest, the tenant is the owner; the owner of the land is not the owner. In Williams, the lien claimants registered a claim for lien against the leasehold interest, set out the name of the owner of the freehold, but made no mention of the owner of the leasehold interest. Master Sandler held that the claims for lien did not comply with section 34(5) of the Construction Lien Act and were invalid. He held that their validity could not be saved by section 6 of the Act because the omission of the owner of the leasehold interest was not a minor irregularity; the name of the owner of the leasehold interest was a crucial prerequisite.