Court of Appeal Opens the Door on Breach of Trust Remedies

On March 16, 2010, the Ontario Court of Appeal released its reasons upholding the ruling of the Divisional Court in Sunview Doors Limited v. Academy Doors & Windows Ltd., Vlasis Pappas, Vlasios Pappas and Olympia O’Brien. In overturning the trial judge, the Court ruled that in order for a s. 8(1) statutory trust to arise pursuant to the Construction Lien Act (the “Act”) it is not necessary that a supplier intend that its materials be incorporated into a specific and identifiable improvement in order to attract a trust remedy.

Click download to read the full update.