The Equitable Doctrine of Marshalling Applies to Construction Liens


The Construction Lien Act seems to be a world unto itself, unaffected by the general principles of law. But the recent decision of the Alberta Queen's Bench reminds us that a construction lien is one form of secured interest. The lien is therefore subject to the general principles of the law of mortgages and secured interest. The court held that a construction lien is subject to the age-old equitable principle of marshalling. This principle can be of great help to lien holders seeking to recover value from a highly mortgaged property.

There are other long-standing principles that may substantially affect priorities of lien holders. Marshalling and apportionment are just two of those principles.

LOADING PDF: If there are any problems, click here to download the file.

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.

© Thomas Heintzman, Arbitration Place | Attorney Advertising

Written by:


Arbitration Place on:

Popular Topics
Reporters on Deadline

"My best business intelligence, in one easy email…"

Your first step to building a free, personalized, morning email brief covering pertinent authors and topics on JD Supra:

Sign up to create your digest using LinkedIn*

*By using the service, you signify your acceptance of JD Supra's Privacy Policy.

Already signed up? Log in here

*With LinkedIn, you don't need to create a separate login to manage your free JD Supra account, and we can make suggestions based on your needs and interests. We will not post anything on LinkedIn in your name. Or, sign up using your email address.