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 newsletter is FREE and keeps you up to date on all the developments in the Ontario legal community. Please enter your email address below to subscribe.

Recent articles & video

More civil liability for privacy complaints in Ontario after landmark case

Privacy Commissioner could overhaul artificial intelligence laws amid mounting privacy concerns

Cynthia Khoo to research cybermisogyny for women's rights org

Windsor Law expands class action clinic to meet growing demand

Human rights monitoring falls in the law society's mandate, says founding member of group

Condo board capacity still unsettled after decision on notice and nullity

Most Read Articles

More civil liability for privacy complaints in Ontario after landmark case

Privacy Commissioner could overhaul artificial intelligence laws amid mounting privacy concerns

Human rights monitoring falls in the law society's mandate, says founding member of group

Juror's alleged letter praising Crown's appearance does not amount to bias, appeal judges say