The appellant was a director of a travel agency that sold tickets for the respondent airline.
The agency collected funds from ticket sales, which were to be held in trust for the airline, but deposited them into a general operating account.
When the agency experienced financial difficulties, the bank seized the funds in the general account to satisfy a demand loan guaranteed by the directors.
The airline sued the directors personally for the breach of trust.
The Supreme Court of Canada held that the relationship was one of trust and that the appellant director was personally liable as a constructive trustee because he knowingly assisted in a fraudulent and dishonest breach of trust by the corporation.
