Legal Blog

Unjust Enrichment & Trust

Tremblar Building Supplies Ltd. v. 1839563 Ontario Limited 2020 Ont SCJ (Div Ct)

A subcontractor, who had not liened the project, claimed against the owner for breach of trust and unjust enrichment. It alleged that the owner had not paid the bankrupt general contractor, who had therefore not paid the sub. The court dismissed the action. There is no trust claim against a payor two rungs up the construction ladder. Unjust enrichment does not apply because the comprehensive scheme of rights and obligations under the Construction Act is the juristic reason for precluding claims for unjust enrichment by subs against owners.

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