The moving party, acting under a s. 38 BIA order in the bankruptcy of a general contractor, moved for a final order that a release executed by the bankrupt's trustee did not bar a claim for damages against the respondent municipality.
The moving party also sought an order nunc pro tunc for leave to amend the bankrupt's statement of defence to add a crossclaim against the municipality.
The court dismissed the motion, finding that the action had already been dismissed following a settlement, and a crossclaim could not stand alone under the Construction Lien Act.
Furthermore, the comprehensive release executed by the trustee barred the crossclaim, and the court declined to exercise its discretion under s. 37 of the BIA to reverse the trustee's decision.
