Provincially created trusts deemed valid
Matthew Lerner says that following a recent Court of Appeal ruling the system of interlinking contracts in the construction industry will be better preserved. Photo: Laura Pedersen

Provincially created trusts deemed valid

Ruling overturns lower court’s decisionA statutory trust under the province’s Construction Lien Act is a valid trust that can survive bankruptcy, a panel of judges from the Court of Appeal of Ontario decided in a Jan. 14 decision, The Guarantee Company of Canada v. Royal Bank of Canada, 2019 ONCA 9.

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