Quote:
Originally Posted by OldDutch
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However, he got parts of the work contracted out. Although we paid him in full and quickly, one of his sub-contractors was left hanging by him for a small amount. Now that sub-contractor is looking to put a lien on our property....
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This is exactly the reason Builder's Lien Act of Alberta was created, to protect the little guy from being screwed. Unfortunately, over the years, most guys (both big and little) have realized how powerful the Act is in creating threats and multiple nuisances to the property owners. Nowadays, liens are used and overused all the time. This was a general rant.
In your case, if you did not ask your prime contractor for a StatDec (in which a contractor swears under oath that he had done all the work he's being paid for and he paid all of his workers and subs), you could be on the hook for the lien amount. (A purposely false StatDec is a criminal offense.) You will still have the case and claim against your prime guy (and good luck suing him and collecting on the judgement).
One thing, you do not necessarily have to pay the lien amount directly to the sub. You can pay it in court (plus some fees) and have it placed in trust and have the lien removed from your property title within a week or so. Then your sub has six months to file a statement of claim against you. If he doesn't, you get your money back. Just go see the court clerk.
You should also file small claims against your prime and your sub now and ask to have the case heard concurrently. If it's simple enough, you do not need a lawyer for this, although it is wasting time and effort. Good luck.