A building supplies distributor brought a motion for summary judgment against a construction contractor and its directors for unpaid invoices totalling approximately $254,393.30 (including interest).
The contractor disputed the amount owing and raised a set-off for work performed on an unrelated project.
The court found the action suitable for summary judgment and granted it to the plaintiff.
The court held that the contractor was required to apply payments as allocated by the plaintiff, not as the supplier attempted to reallocate them.
The court also found the contractor liable for breach of statutory trust obligations under the Construction Act for failing to maintain separate trust accounts and for failing to provide an accounting of trust funds.
The directors were found jointly and severally liable for the breach of trust.
The court awarded damages to be calculated in accordance with its reasons and fixed costs at $30,000 inclusive of HST.
