Legal Notes: The liability potential for legal counsel with frivolous liens

The liability consequences can spread beyond the party launching a lien, if it is later ruled by the court to be frivolous, vexatious and abusive.

Associate Justice Wiebe of the Superior Court of Justice dismissed the liens motions, and awarded costs against Viceroy. In his ruling, he wrote the liens claims were, “for an improper purpose, namely either to force Jia and Bridlepath to agree with Mr. Sun’s joint venture proposal or as a reprisal for not doing so.”

“They argued that the lawyers should have investigated the lien further and should have demanded more documents and timely disclosure,” “Given the strict timeframes under the act, including those for preservation of liens, lawyers can be faced with the prospect of a request to preserve a lien on the penultimate or last day, failing which, the lien rights will expire,” write Lynde, Lu and Pasqualitto.

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