Status of interest payments reflected status of principal sums on which interest accrued

Construction Law – Contracts - Breach of terms of contract

Action was started by plaintiff contractors, under Construction Lien Act (CLA). Subcontractor claimed entitlement to money, that was subject to priority claims. Subcontractor claimed to be trust beneficiary under CLA. Counsel for contractors claimed entitlement to charging order. Contractors claimed for breach of contract and breach of trust. Contractors' action allowed, with subcontractors being liable for holdbacks. Charging order was granted, having priority over subcontractor's claims. Subcontractor appealed priority portion of judgment. Appeal allowed. Charging order took precedence over unsecured claims. However, trial judge erred in finding that subcontractor was not trust beneficiary. Subject funds were properly seen to be trust funds. Status of interest payments reflected status of principal sums, on which interest accrued. Subcontractor was entitled to payment in full on its trust claim, in amount of $54,737.61.

Great Northern Insulation Services Ltd. v. King Road Paving and Landscaping Inc. (2019), 2019 CarswellOnt 9651, 2019 ONSC 3671, D.L. Corbett J., F.L. Myers J., and Sheard J. (Ont. Div. Ct.); varied (2017), 2017 CarswellOnt 20276, 2017 ONSC 7675, R.E. Charney J. (Ont. S.C.J.).

Case Law is a weekly summary of notable civil and criminal court decisions by the Supreme Court of Canada, the Federal Court of Canada and all Ontario courts. These cases may be found online in WestlawNext Canada. To subscribe, please visit store.thomsonreuters.ca

Free newsletter

Our daily newsletter is FREE and keeps you up to date on all the developments in the Ontario legal community. Please complete the form below and click on subscribe for daily newsletters from Law Times.

Recent articles & video

Province’s auto insurance plan deemed problematic by lawyers

Ontario Human Rights Commission calls on police to address racial profiling

Cassels Brock’s Noble Chummar reappointed to LCBO

Ford government’s cuts to Toronto city council ruled constitutional

Histories of Canadian law and Métis people are entwined, says Jean Teillet

More women are on TSX company boards - but there’s slow progress to the C-Suite, says Osler

Most Read Articles

Ontario court rules cap on general damages does not apply to sexual abuse

Man discharged from his fourth bankruptcy

Ontario law firms targeted by divorce settlement fraud attempts

Ford government’s cuts to Toronto city council ruled constitutional