The plaintiff supplier brought an ex parte motion seeking a declaration that amounts owed for construction materials constituted a trust under s. 8 of the Construction Lien Act.
The materials were supplied to the defendants for a renovation project, and a default judgment had previously been obtained for the unpaid balance.
The court applied the four-part test articulated in Sunview Doors Ltd. v. Pappas for establishing beneficiary status under the statutory trust provisions.
Finding that the defendants were contractors, that the plaintiff supplied materials, that the defendants received or were owed contract funds, and that they owed the plaintiff for the materials, the court held that the statutory trust was established.
The plaintiff was therefore declared a beneficiary of the trust and granted priority to any remaining funds payable under the construction contract.
