The Manitoba Court of Queen’s Bench recently held that the Canadian Revenue Agency (CRA) has priority over subcontractors and the bonding company in respect of holdback funds held by the owner in trust for the contractor. The decision in Manitoba Housing and Renewal Corp. v. Able Eavestroughing Ltd., once again underlines the impact of federal […]

The Ontario Court of Appeal recently considered the scope of the right of set-off under the trust fund sections of the Ontario Construction Lien Act (the Act) and under equitable set-off under a contract claim. In Architectural Millwork & Door Installations Inc. v. Provincial Store Fixtures Ltd., the Court of Appeal held that the owner […]

In Robert Nicholson Construction Co. v. Edgecon Construction Inc., 2016 CarswellOnt 8345, 2016 ONSC 3107, the Ontario Divisional Court decided two matters of importance under the trust fund sections (sections 7-13) of the Ontario Construction Lien Act. First, the court held that a subcontractor cannot assert a trust fund claim against the owner under the […]

The Supreme Court of Canada recently released its highly anticipated decision in Stuart Olson Dominion Construction Ltd. v. Structal Heavy Steel. The court has held that the trust fund obligations on a construction project did not terminate when the contractor filed a bond in respect of the subcontractor’s lien. This decision is of fundamental importance […]

When a contractor posts a bond to secure the construction builder’s lien claim of its subcontractor and the subcontractor discharges its lien, does the contractor continue to have any trust fund responsibilities to the subcontractor? Must the contractor continue to pay to the subcontractor the money it receives from the owner, particularly money received from […]

What are the limits of the trust fund liabilities under the Construction Lien Act? Those liabilities do not just apply to a contractor or subcontractor engaged in a building project.  Those liabilities may also apply to an officer or director or a person controlling the company. But can an officer, director or controlling person be […]

Construction Law – Construction Liens – Trust Fund Provisions The Ontario Court of Appeal has recently considered some interesting issues relating to the trust fund provisions of the Construction Lien Act of Ontario.  In Colautti Construction Ltd. v. Ashcroft Development Inc, the Court provided some useful guidance about the roles of owners and contractors in […]

The Trust Fund Provisions of the Construction Lien Act (Ontario):   New developments relating to Suppliers and Third Parties By Thomas G. Heintzman O.C, Q.C. and Mekhriban Mamedova[1]    6th Annual Current Issues in Commercial Litigation: Hamilton Law Association; March 2, 2011 1.            Introduction             The Construction Lien Act looks like a formidable statute to most […]

Construction Lien Action- Trust Fund Claim by Supplier:  In order for a trust fund claim to arise under s. 8 of the Ontario Act in favour of a supplier, it is not necessary that the supplier intended that the material be used for the purposes of a known and identified improvement. It is sufficient if: […]