Call us: (905) 366 9700
Legal Blog:
Nov
01
2000
Owner’s Trust
The court’s censure of breach of trust is incredibly wide ranging. Judges will go out of their way to find a breach of trust and affix personal liability to the individuals involved. The case of Structural Contracting Ltd. v. Westcola Holdings Inc., a 2000 decision of the Ontario Court of Appeal, is an example.
Continue Reading >Nov
01
2000
Bankrupt
The chief executive officer of a large sub finds himself in trouble. There has been a downturn in the economy, the sub had some bad jobs, and the sub has gone under leaving a spate of incensed subsubs. The sub never operated separate trust accounts and was in breach of the trust fund rules under the Construction Lien Act (the “Act”). The CEO is liable under the Act for the monies owed to the subsubs and the debts are so large that the CEO will never be able to repay them. With heavy heart, the CEO assigns into bankruptcy. After all, bankruptcy wipes out all debts; or does it?
Continue Reading >