The appellant appealed a summary judgment finding that a co-defendant held monies in trust for the respondent.
The motion judge had concluded that 75% of the sale price of products remained the property of the respondent.
The Court of Appeal found that the agreement merely created a contractual obligation to pay 75% of the invoiced amount, with the co-defendant assuming the risk of non-payment.
The lack of a requirement to segregate funds further negated the existence of a trust.
The appeal was allowed, the judgment against the appellant was set aside, and the motion for summary judgment was dismissed.