Legal Blog

Owner’s Trust Breach

Feltz Design Build Limited v. Larson 2021 Ont SCJ

The owner, which had not paid money that its own consultant had certified, was held to have breached the owner trust section of the Construction Act. The contractor was able to adduce sufficient evidence to show that the owner had received funds from other developments. That was enough for the judge to hold that the owner breached its trust. It was not necessary for the contractor to demonstrate that the owner received money from the particular development. The judge also held the sole director and officer personally liable for the breach of trust.

Written by Jonathan Speigel, the founding partner of Speigel Nichols Fox LLP, leads the litigation and construction practices.