Legal Blog

Trust and Lien Actions

Stuart Olson Dominion Construction Ltd. v. Structal Heavy Steel 2015 SCC

Sub commenced a trust action and a lien action. The general discharged the lien by way of posting a lien bond. The sub then convinced the owner to hold off payment to the general because of the alleged breach of trust. The Court held that a trust action and a lien action were 2 separate remedies and that the vacating of a lien from title by way of a lien bond did not mean that there was no longer a cause of action for a trust claim. The judgment correctly noted that a simple vacating of the lien did not mean that the lien was acknowledged to be correct. It also correctly noted that it would not allow a situation in which the trust action was dismissed and then the lien action was dismissed for not being, say, preserved or perfected on a timely basis. Regardless, much of this decision does not apply to Ontario. The case emanated out of Manitoba, whose Builders Lien Act is very different from the Ontario CLA.