The individual defendants brought a motion for summary judgment to dismiss the plaintiff's breach of trust claim under the Construction Lien Act, arguing the claim was statute-barred.
The plaintiff had agreed to extend the time for payment of outstanding invoices after the corporate defendant requested forbearance.
The court found that the forbearance agreement was supported by consideration and was therefore enforceable.
Furthermore, the court held that the limitation period for a breach of trust claim does not automatically commence when payment is due, but is governed by the discoverability principle under the Limitations Act, 2002.
The motion for summary judgment was dismissed.
