Bill 123 (Legislature 14, Session 1)

L14 S1 6013

Alberta — Bills

No. 123 1st Session, 14th Legislature, Alberta 8 Elizabeth II BILL 123 A Bill to amend The Mechanics' Lien Act HON. MR. MANNING Prlnted by L. S. WALL, Printer to the Queen's Most Excellent Majesty. Edmonton. Alberta, 1960

Explanatory Note General. In a recent court decision (Horwitz v. ltigau~ :auild ing Enterprises Ltd. et al (19'60.) 3'0 W.W.R. 559) it was held that under the present

section 1,5 of The Mechanics' Lien Act the limit of the owner's liability to lienholders was not the value of the work done but the contract price. In that case the contract had been abandoned when the work was less than half completed. The lienholders brought action against the owner for an amount equal to the value of the work done less the sum paid to the contractor in good faith. The owner claimed he was liable for only 15% of the value of the work done less the sum paid in good faith to the contractor.

The court held both contentions incorrect and that the owner was liable for the .full amount of the liens filed less the sum paid in good faith, as the limit of his liability on the wording of the Act was the full contract price. The punpose of this Bill is to amend

section 15 of the present Mechanics' Lien Act (R.S.A. 19155, c. 197) to revert to the wording used in the equivalent provision in the original ALberta Mechanics' Lien Act. Bill No. 46, which is before this Session, is a Bill to enact a revision of the present Mechanics' Lien Act and if enacted would not come into force until a date to be fixed by 'Proclamation. This Bill would come into force upon as,sent and be effective until such time as Bill 46 should come into force.

Section 15 presently reads: "15. OJ) Except as otherwise provided in this Act, the lien does not attach so as to make the owner liable for a greater sum than the contract price, less any sum of money that may have duly been paid to the contractor up to the time that the lien ari.ses.

(2) Except as otherwise provided in this Act, where the lien is claimed by a person other than the contraotor, the amount which may be claimed in respect thereof is limited to the amount agreed to be paid to the contractor or sub-contractor or other person for whom the contl"aot work has been done, less any sum of money that may have been duly paid to the contractor, sub-contractor or other person up to the time the lien arises.".

Section 16, subsection (6) presently reads: "

(6) Bayment of the percentage required to be retained under thIs seotion may be Validly made, after the expiration of the statutory period set out in

section 28, so as to discharge all liens or charges in respect thereof, unless in the meantime a elaim for a lien has been regi,stered or proceeding,s have been commenced to enforce a lien or charge against such percentage as provided by

section 30, in which case the owner may pay the percentage into COUl"t in such proceedings and such payment constitutes valid payment in discharge of the owner to the amount thereof.". 4. Amendments apply to claims pending.

BILL No. 123 of 1960

An Act to amend The Mechanics' Lien Act (Assented to , 1960) HER MAJESTY, by and with the advice and consent of the Legislative Assembly of the Province of Alberta, enacts as follows: 1.. The Mechanics' Lien Act, being

chapter 197 of the Revised Statutes, is hereby amended.

Section 15 is struck out and the followinig is sub stituted: 1.'5.

(1) Except as otherwise provided in this Act, a lien does not attach so as. to make the owner liable for a greater sum than the sum owing and payable by the owner to the contractor.

(2) Except as otherwise provided in this Act, where a lien is claimed by any person other than the contractor, it does not attach so as to make the owner liable for a greater sum than the amount owing to the contractor for whom, or for whose sub-contractor, the work has been done or the material has been furnished.

Section 16, subsection (6) is amended by adding at the end thereof the words "and a discharge of the liability of the owner to the lienholders for the amount of the liens". 4. This Act applies to claims of liens pending at the date this Act comes into force. 5. This Act comes into force on the day upon which it is assented to.

No. 123 FIRs'r SESSION FOURTEENTH LEGISLATURE 8 ELIZABETH II 1960 BILL

An Act to amend The Mechanics' Lien Act Received and read the First time ........................ . Second time ........ . Third time .......... . HON. MR. MANNING Title: 1960 (14th, 1st) Bill 123,

An Act to amend The Mechanics' Lien Act

Document details

Collection	Alberta — Bills
Citation	L14 S1 6013
Type	bill
Volume / chapter	L14 S1 6013
Language	en
Format	json
Source	PROVINCIAL
Identifier	9081769f04e2ffad3a1fbd5fee88c5abe5f102e8

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