The Cost Of Getting It Wrong: Damages For A Wrongfully Filed Lien Claim In BC

The British Columbia Builders Lien Act provides that a lien claimant is liable for costs and damages incurred by an owner as a result of a wrongfully filed lien claim. However, there are very few cases where costs and damages have been awarded. We previously reported on a 2022 decision awarding damages here. In a more recent BC Supreme Court decision, the Court similarly ordered a lien claimant to pay costs and damages for filing a lien claim outside the 45-day time limit and on the incorrect parcel of land.

The case

The dispute arose from the construction of several townhome and apartment buildings located in Surrey, British Columbia. The owner retained Mainland Civil Site Services Inc. (Mainland) to perform civil works on three project sites and off-site civil works. The three project sites corresponded with three distinct parcels of land identified as Sites 1, 2 and 3.¹

The key dates are as follows:

On June 14, 2024, Mainland filed two claims of lien on Site 1:⁵

1. CA$164,920.27 – for work completed on Site 1 (the First Lien)
2. CA$1,137,267.20 – included claim for work completed on Site 2, 3 and Off-Site Civil Works (the Second Lien)⁶

The owner cancelled both liens from title by posting a lien bond as security and subsequently applied to cancel the Second Lien on the basis that it was inflated and wrongfully registered on lands to which it did not attach. Mainland conceded that the Second Lien should be reduced by the duplicate amounts claimed,⁷ but asserted that the work done on Site 2, Site 3 and off-site were connected and necessary to the improvements carried out on Site 1. Mainland therefore argued that the Second Lien was not filed out of time or connected to the incorrect parcel of land.⁸

The Court’s decision

The BC Supreme Court concluded that Mainland had wrongfully filed the Second Lien for three reasons:⁹

1. It was filed more than 45 days after a Certificate of Completion was issued for Sites 2 and 3, contrary to Section 20(1) of the Builders Lien Act, which required Mainland to file any liens for work done on Sites 2 or 3, or the off-site works within 45 days of the relevant Certificates of Completion;¹⁰
2. It was filed against the incorrect parcel of land, as the lien primarily consisted of work done on Site 2, Site 3 and off-site;11 and
3. It improperly duplicated the amount already secured by the First Lien.¹²

Costs and damages

Pursuant to Section 19 of the Builders Lien Act, the Court awarded the owner costs and damages it incurred as a result of the Second Lien, including the costs of the lien bond posted as security.¹³ Importantly, the Court confirmed that a lien need not be filed frivolously or vexatiously, or as an abuse of process, to trigger liability under Section 19. Rather, liability arises from the wrongful filing of the lien itself.¹⁴

The Court further concluded that the First Lien was to remain and ordered a reduction in security to reflect the value of the First Lien.¹⁵

Takeaways

This decision is a reminder that parties must exercise care to ensure a lien claim is filed both within the statutory timeline and against the correct parcel of land. A lien claim need not be filed vexatiously or frivolously for a party to be held liable for costs – the wrongful filing itself is sufficient.

Footnotes

1. Mainland Civil Site Services v. Anthem Coyote Creek One Holdings Ltd. Partnership (2025 BCSC 2009) at paras. 3-5. ↩

2. Mainland at para. 10. 

3. Mainland at para. 12. 

4. Mainland at para. 7. 

5. Mainland at paras. 15-16. 

6. Mainland at para. 21. 

7. Mainland at paras. 18 and 19. 

8. Mainland at para. 22. 

9. Mainland at para. 58. 

10. Mainland at para. 31. 

11. Mainland at paras. 44-45 and 47. 

12. Mainland at para 58. 

13. Mainland at para. 61. 

14. Mainland at para. 57. 

15. Mainland at paras. 64-65.