Does a Builders Lien Apply To A Lease Of Airport Lands?


interjurisdictional immunity, leasehold interest, aeronautics, lien, federal

The BC Court of Appeal held that the Act did not apply to the leasehold interest of the Vancouver International Airport Authority. The Court drew the constitutional boundary based upon the purpose of the lease from the Federal Crown. This may raise questions relating to the enforcement of provincial lien statutes against sub-leases of federal lands or from federally regulated institutions.

The Builders Lien Act of BC says that any agreement that provides that the Act is not to apply is void.

The Court reviewed the extent of the federal power over aviation. It acknowledged that anything which is an "integral and vital part of aeronautics and aerial navigation" falls within that power and that airports are integral to aviation.

The Court's decision raises interesting questions for sub-leases of federal land or from federally regulated institutions.

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DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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