Legal Blog

Trust Fund

620369 Ontario Inc. v. Alumpro Building Products Plus Inc. 2014 Ont SCJ

Plaintiff supplier provided defendant contractor with roofing materials that the contractor used either in its contracts with owners or re-sold to roofers and others. The supplier did not have information as to the improvements for which its products were used. The supplier relied on the criteria set out in Sunview Doors 2010 Ont CA to prove a breach of trust: a) contractor was a general or sub; b) supplier supplied materials to projects on which the contractor was a general or sub; c) contractor received money for the projects; and d) contractor owed the supplier for those materials. On a summary judgment motion, the contractor provided little evidence to rebut the plaintiff’s scant, but more fulsome, evidence. The contractor’s inability to put its best foot forward was sufficient for the judge to find that the 4 elements were proven. The sole director was also held liable under s.13 of the CLA.

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

;