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 […]
Continue Reading →CRA Entitled To Priority Over Subcontractors To Trust Funds In Owner’s Hands
Posted by: Construction Law Canada
Trust Fund Set Off Rights Are Not Available If No Trust Fund Is Maintained and No Lien Claim Is Made: Ontario Court Of Appeal
Posted by: Construction Law Canada
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 […]
Continue Reading →Ontario Divisional Court clarifies the Trust Fund Obligation Under The Construction Lien Act
Posted by: Construction Law Canada
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 […]
Continue Reading →Trust Fund Obligations Continue After A Lien Bond Is Filed: Supreme Court Of Canada
Posted by: Construction Law Canada
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 […]
Continue Reading →Does Posting A Lien Bond Eliminate A Contractor’s Trust Fund Obligations?
Posted by: Construction Law Canada
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 […]
Continue Reading →When Is An Officer, Director Or Controlling Person Liable For A Construction Lien Trust Fund Claim?
Posted by: Construction Law Canada
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 […]
Continue Reading →What Is The Role Of Owners and Contractors In The Application Of Trust Funds?
Posted by: Construction Law Canada
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 […]
Continue Reading →The Trust Fund Provisions of the Construction Lien Act (Ontario): New Developments relating to Suppliers and Third Parties
Posted by: Construction Law Canada
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 […]
Continue Reading →Trust Fund Claim by Supplier
Posted by: Construction Law Canada
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: […]
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