The plaintiff, San Remo Lighting, moved for summary judgment against the defendants, Am-Tech Electrical Inc. and others, alleging breach of trust obligations under the Construction Lien Act (CLA) for unpaid invoices.
Am-Tech admitted to not segregating trust monies as required by the CLA but later placed the claimed amount in its counsel's trust account.
The court, adopting reasoning from a Manitoba case, found that while a breach of trust had occurred, the subsequent reconstitution of the fund raised a genuine issue requiring a trial to fully evaluate the ramifications of the breach and the defendants' right to set-off.
The motion for summary judgment was dismissed, and the funds were ordered to be paid into court.