Background:
Lonsdale Quay Market Corporation, the petitioner, hired Klondike Contracting Corporation as the general contractor for a construction project. Klondike engaged various subcontractors, including J.A.W. Fabricators Co. Ltd. Due to unpaid invoices, several subcontractors, including J.A.W., filed lien claims against Lonsdale's property. Klondike eventually went into receivership, and Lonsdale sought to discharge its liability for these lien claims under the Builders Lien Act.

Legal Issues:
Lonsdale requested that, upon paying $521,008.12 (the statutory 10% holdback of the contract price), the lien claims be discharged. J.A.W. opposed, arguing that Lonsdale must pay $949,361.13, which included the J.A.W. lien of $428,353.01. J.A.W. also contended that Lonsdale improperly paid $807,535.67 to Klondike after receiving notice of the lien.

Court’s Discussion:
The court examined sections 23 and 34 of the Builders Lien Act. It determined that Lonsdale, having paid Klondike after notice of the lien, owed $944,111.15 in total. The court rejected Lonsdale’s argument that it could offset additional costs to complete Klondike's defaulted work without holding back extra funds.

Conclusion:
The court ordered that Lonsdale pay $944,111.15 into court to discharge its liability. It deferred addressing issues regarding the distribution of funds and further disputes concerning the receivership of Klondike.

Costs and Award:
The amount to be paid by Lonsdale into court was $944,111.15.