Rahco International Inc. v. Laird Electric Ltd.,

• Judge: Hanebury
• Neutral Citation: 2006 ABQB 592
• Date: 20 April 2006
• Court: Court of Queen's Bench of Alberta (Canada)

Rahco Intl. Inc. v. Laird Electric Ltd. (2006), 398 A.R. 332 (QBM)

MLB headnote and full text

Temp. Cite: [2006] A.R. TBEd. AU.031

Rahco International Inc. (plaintiff) v. Laird Electric Ltd. (defendant)

(0601 03273; 2006 ABQB 592)

Indexed As: Rahco International Inc. v. Laird Electric Ltd.

Alberta Court of Queen's Bench

Judicial District of Calgary

Hanebury, Master in Chambers

July 28, 2006.

Summary:

Laird Electric Ltd. entered into a contract with Rahco International Inc. to assemble and do the electrical connections for several large pieces of mining equipment located at the Suncor Energy Inc. tar sands near Fort McMurray. Laird Electric claimed that it was not paid for all of its work and it filed a builder's lien for $1,321,288.47 against the freehold and leasehold mineral titles to the lands where the equipment was assembled and was operating. Rahco applied pursuant to s. 48(1)(c) of the Builders' Lien Act to discharge the lien on the basis that the equipment that Laird Electric assembled was not an "improvement to the land" as required by the Act.

A Master of the Alberta Court of Queen's Bench granted the application.

Mechanics' Liens - Topic 255

Lienable interest - Improvements, buildings, etc. - What constitutes an "improvement" - [See Mechanics' Liens - Topic 2306 ].

Mechanics' Liens - Topic 2306

Lienable claims - General principles - Requirement that work done or materials supplied in respect of an improvement - Laird Electric Ltd. entered into a contract with Rahco International Inc. to assemble and do the electrical connections for several large pieces of mining equipment located at the Suncor Energy Inc. tar sands near Fort McMurray - The equipment was huge and had to be trucked in and assembled on site - Laird Electric claimed that it was not paid for all of its work and it filed a builder's lien - Rahco applied pursuant to s. 48(1)(c) of the Builders' Lien Act to discharge the lien on the basis that the equipment that Laird Electric assembled was not an "improvement to the land" as required by the Act - A Master of the Alberta Court of Queen's Bench granted the application - The mining equipment was not an "improvement" to land - The only way that the equipment was attached to the land was through a power cable - The equipment was therefore not affixed to the land, it was only tethered - The equipment was also designed to be movable and it was not intended to become part of the land - See paragraphs 64 to 68.

Mechanics' Liens - Topic 5056

Obtaining a lien - Vacating registered lien - Burden of proof - [See Mechanics' Liens - Topic 7006 ].

Mechanics' Liens - Topic 7006

Loss or discharge of lien - Order vacating lien - Procedure - Rahco International Inc. applied pursuant to s. 48(1)(c) of the Builders' Lien Act to discharge a builders' lien filed by Laird Electric Ltd. - A Master of the Alberta Court of Queen's Bench stated that "the application is similar to a summary judgment application and the initial burden is on Rahco to demonstrate that the lien is invalid. The burden then shifts to Laird Electric to demonstrate that there is a genuine issue for trial. The overall evidentiary burden is on Rahco to establish beyond doubt that no genuine issue for trial exists" - See paragraph 23.

Cases Noticed:

Evergreen Irrigation Ltd. v. Belgium Farms Ltd. (1976), 3 A.R. 248 (T.D.), consd. [para. 18].

Orban Industries Ltd. v. Gauntlet Energy Corp., [2003] A.J. No. 1720 (Q.B.), leave to appeal refused [2004] A.R. Uned. 3 (C.A.), consd. [para. 18].

Gauntlet Energy Corp., Re - see Orban Industries Ltd. v. Gauntlet Energy Corp.

Kennedy Electric Ltd. v. Rumble Automation Inc. et al. (2006), 208 O.A.C. 156 (Div. Ct.), consd. [para. 18].

Kennedy Electric Ltd. v. Dana Canada Corp. - see Kennedy Electric Ltd. v. Rumble Automation Inc. et al.

Murphy Oil Co. et al. v. Predator Corp. et al. (2006), 384 A.R. 251; 367 W.A.C. 251; 2006 ABCA 69, refd to. [para. 18].

Vinterra Properties Inc. v. Calabria Interiors Ltd. (2005), 377 A.R. 60 (Q.B.), refd to. [para. 19].

Daon Development Corp. v. Bahry's Glass Ltd. et al. (1982), 48 A.R. 212 (Q.B. Master), refd to. [para. 19].

Carrington Homes Ltd. v. L.B.H. Building Supplies (Fort McMurray) Ltd. (1986), 77 A.R. 152 (Q.B. Master), refd to. [para. 19].

Dominion Bridge Inc. v. Noell Stahl-Und Maschinebau GmbH, 1999 CarswellOnt 5067 (Sup. Ct.), refd to. [para. 19].

Boomars Plumbing & Heating Ltd. v. Marogna Brothers Enterprises Ltd., [1988] B.C.J. No. 613 (C.A.), consd. [para. 19].

V.A.W. Manufacturing Ltd. v. Electric Furnace Products Ltd. et al. (1984), 54 A.R. 243 (Q.B. Master), consd. [para. 19].

Deal S.r.1. v. Cherubini Metal Works Ltd. (2001), 154 B.C.A.C. 161; 252 W.A.C. 161; 2001 BCCA 49, consd. [para. 19].

Beloit Canada Ltd. v. Fundy Forest Industries (1981), 37 N.B.R.(2d) 17; 97 A.P.R. 17; 127 D.L.R.(3d) 320 (C.A.), consd. [para. 20].

Pioneer Exploration Inc. Estate (Bankrupt) v. Euro-Am Pacific Enterprises Ltd. (2003), 339 A.R. 165; 312 W.A.C. 165 (C.A.), consd. [para. 20].

Clarkson Co. et al. v. Ace Lumber Ltd. et al., [1963] S.C.R. 110, refd to. [para. 25].

Wyo-Ben Inc. v. Wilson Mud Canada Ltd. (1985), 23 D.L.R.(4th) 760 (Alta. C.A.), refd to. [para. 33].

Spears Sales & Services Ltd. v. Westpine Fisheries Ltd. et al. (1985), 17 C.L.R. 197 (B.C. Co. Ct.), refd to. [para. 48].

Chubb Security Safes v. Larken Industries Ltd., [1990] B.C.J. No. 26 (S.C.), refd to. [para. 48].

Statutes Noticed:

Builders' Lien Act, R.S.A. 2000, c. B-7, sect. 1(d), sect. 6(1) [para. 16].

Counsel:

Jamie Flanagan (McLennan Ross LLP), for the applicant;

Geoffrey Edgar and Mr. Kickham (Miller Thomson LLP), for the respondent.

This application was heard on April 20, 2006, before Hanebury, Master in Chambers, of the Alberta Court of Queen's Bench, Judicial District of Calgary, who delivered the following reasons for judgment on July 28, 2006.