Article

Note: To secure the release of a property lien filed by Creative Door Services (Contractor) for unpaid invoices for installation of doors and hardware in homes in a development project, Henderson Land Holdings (Canada) Ltd. (Owner) obtained a standby LC in the amount of CA$40,761.60 (the invoice amount plus 10 percent).

Due to the illness of Contractor's counsel, pursuit of the litigation was significantly delayed. As a result, Owner moved to dismiss Contractor's claim for want of prosecution and moved for an order to permit Owner to cancel the standby LC. Owner claimed that it would now have difficulty securing evidence for trial because two of its employees who were involved with the litigation were no longer employed by the company, one of whom had expressed a disinclination to assist with the trial.

The British Columbia Supreme Court of New Westminster, British Columbia, Keighley, M., denied both of Owner's motions, noting that although Contractor's delay was inordinate and inexcusable, the case should still proceed to trial.

The court noted that Contractor's claim is commercial and is for a small amount of money, and Owner did not provide any evidence to state that the carrying costs of the standby LC were significant or that Owner would be unable to secure crucial evidence for its defense.

[JEB/al]

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