Background

• Prêts Relais Capital Inc. contested the distribution of proceeds from a court-supervised sale, arguing that the construction lien registered by Les Entreprises J.S. Lauzon Inc. was invalid due to late registration.
• J.S. Lauzon maintained that the lien was filed on time and that its work increased the property’s value.

Issues and Decision

1. Was the lien registered within the legal timeframe? → Yes.
2. Did the work provide added value? → Yes.

Court’s Reasoning

• Lien Registration Deadline:

  • Under Article 2727 C.c.Q., a construction lien must be registered within 30 days of work completion.
  • J.S. Lauzon completed demolition and excavation work on December 8, 2023, pending foundation work by Dubé.
  • On January 12, 2024, Dubé failed to reimburse an advance, signaling project abandonment.
  • The lien, registered January 15, 2024, met legal requirements.

• Added Value:

  • Article 2728 C.c.Q. requires the lien to secure an increase in property value.
  • Demolition was an essential step in the construction project, conferring value.
  • The value increase was confirmed by the bailiff’s report.

Conclusion

• Prêts Relais’ contestation dismissed.
• J.S. Lauzon’s lien upheld.
• Prêts Relais ordered to pay costs.