The appellant contractor obtained a judgment against the owner and garnished funds held by an escrow agent.
The respondent, another judgment creditor, also garnished the funds.
The sheriff distributed the funds pro rata under the Creditors' Relief Act.
The appellant appealed, arguing the funds were impressed with a trust under s. 7(2) of the Construction Lien Act.
The Divisional Court allowed the appeal, holding that the funds were trust funds, were not the property of the debtor, and were therefore not subject to pro rata distribution under the Creditors' Relief Act.