Nelson Lumber Co. Ltd. v. Integrated Building Corporation Ltd. et al.

Nelson Lumber Co. Ltd. v. Integrated Building Corporation Ltd. et al.

Where materials ordered from a materialman are brought onto the site in pursuance of the subcontractor's arrangement, the materialman acquires a lien and the statutory time for registering a claim runs from the date the last of those materials are brought onto the site, regardless of whether delivery was made directly by the materialman or indirectly by the subcontractor, provided the materials arrive while the subcontractor is performing its contract.

Citation
[1973] SCR 456
Parties
Appellant / Plaintiff: Nelson Lumber Company Ltd.; Respondent / Defendant: Integrated Building Corporation Ltd.; Respondent / Defendant: Belvedere Developments Ltd.; Respondent / Defendant; Third Party: A. Brudnitzki Construction Ltd.; Respondent / Defendant: Huron & Erie Mortgage Corporation; Respondent / Defendant: The City of Edmonton
Court
Supreme Court of Canada
Jurisdiction
Canada
Judgment Date
31 January 1973
Procedural Posture
Appeal / Judgment of the Supreme Court of Canada on Appeal From the Supreme Court of Alberta, Appellate Division
Outcome
Appeal allowed; judgments below set aside; appellant declared to have a valid lien for unpaid materials.
Legal Topics
Mechanics' Lien, Registration Deadline, Delivery of Materials, Materialman's Lien, Statutory Interpretation
Source Language
English
Property Law Construction Law Secured Transactions Civil Procedure Mechanics' Lien Registration Deadline Delivery of Materials Materialman's Lien +1 more

Case Brief

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Parties

Nelson Lumber Company Ltd.

Appellant / Plaintiff

Integrated Building Corporation Ltd.

Respondent / Defendant

Belvedere Developments Ltd.

Respondent / Defendant

A. Brudnitzki Construction Ltd.

Respondent / Defendant; Third Party

Huron & Erie Mortgage Corporation

Respondent / Defendant

The City of Edmonton

Respondent / Defendant

Procedural Posture

Appeal / Judgment of the Supreme Court of Canada on Appeal From the Supreme Court of Alberta, Appellate Division

Legal Issues

  1. 1 Whether the time for filing a materialman's claim of lien begins to run from the date materials are delivered to the site by the subcontractor or from the date of the last delivery by the materialman or its agent
  2. 2 Whether materials picked up by a subcontractor and later brought to the building site qualify as "furnished to be used" under s.7(1) and trigger the running of the filing period under s.32(2)(a)

Ratio Decidendi

Where materials ordered from a materialman are brought onto the site in pursuance of the subcontractor's arrangement, the materialman acquires a lien and the statutory time for registering a claim runs from the date the last of those materials are brought onto the site, regardless of whether delivery was made directly by the materialman or indirectly by the subcontractor, provided the materials arrive while the subcontractor is performing its contract.

Court Disposition

Appeal allowed; judgments below set aside; appellant declared to have a valid lien for unpaid materials.

Orders

  • Appeal allowed and judgments of the Alberta courts set aside
  • Declare appellant has a valid lien on the subject land in respect of unpaid materials in the amount of $8,473.23