The appellants, construction lien claimants, appealed a decision holding that the proceeds of a court-approved asset sale by a company under CCAA protection did not constitute trust funds under ss. 7 and 9 of the Construction Lien Act.
The Court of Appeal dismissed the appeals, finding that the statutory prerequisites for a trust were not met, as the sale proceeds were not 'received by' or 'in the hands of' the owner, but were instead paid to a court-appointed monitor and stood in substitution for the company's fully secured assets.
