Background: Pinnacle Living (Capstan Village) Lands Inc. and Mondiale Development Ltd. (the appellants) were involved in a construction project in Richmond, BC. They subcontracted Tarrier Group Inc., which then subcontracted Fairway Recycle Group Inc. to provide materials and services. After Tarrier failed to pay Fairway, the appellants allegedly agreed to cover the debt to prevent a lien filing.

Legal Issues: The key issue was whether the appellants could discharge Fairway's lien under Section 23 of the Builders Lien Act after entering into a Payment-Forbearance Agreement. The chambers judge initially ruled that this agreement placed Fairway outside the class of lien claimants that could have their liens discharged by the appellants' payment into court.

Court of Appeal Decision: The Court of Appeal overturned the lower court's decision, finding that the Payment-Forbearance Agreement did not alter the original contractual relationships. The court held that Fairway remained within the class of subcontractor lien claimants covered by Section 23. Thus, the appellants were entitled to discharge the lien upon payment of the statutory holdback amount into court.

Award: The appeal was allowed, permitting the discharge of Fairway's lien upon payment of $95,812.50 into court. The court's ruling did not determine costs related to the appeal or the separate litigation concerning the Payment-Forbearance Agreement.