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Posted in Construction

In order to hold a director or officer liable for a corporation’s breach of trust, the beneficiary of the trust must prove, under section 13(1) of the Construction Lien Act, that the director “assents to, or acquiesces in, conduct that he or she knows or ought reasonably to know amounts to a breach of trust by the corporation.” This is relatively easy to do at a trial -assuming that there was assent. Can it be done by way of a motion for summary judgment? That question was answered in both West Carlton Concrete Corp. v. Smavila Forming Ltd. and Varcon Construction Co. v. 1554098 Ontario Inc., 2011 decisions of the Ontario Superior Court of Justice.

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