Josh Minster

Vestacon Limited commenced an action against the defendants for unpaid invoices totalling $449,819.31 for labour and materials for the renovation of three units of a commercial condominium project.

The defendants were noted in default and deemed to admit all allegations in the statement of claim.

At trial, the court found that the defendant company breached its contract by failing to pay the invoices when rendered and awarded judgment in that amount plus prejudgment interest.

The court dismissed the plaintiff's claims for breach of trust under the Construction Lien Act against the individual defendants, finding insufficient evidence that the defendant company received funds specifically designated for financing the improvement.

The court also awarded costs to the plaintiff.

The defendant 2603553 Ontario Inc. ('260') brought a motion for summary judgment to dismiss a fraudulent conveyance claim by the plaintiff, Vestacon Limited.

Vestacon cross-moved for a certificate of pending litigation.

The court granted 260's motion, finding no genuine issue requiring a trial regarding 260's knowledge of any fraudulent intent on the part of Huszti Investments.

The court concluded that the sale of the units by Huszti Investments to 260 was commercially reasonable and the proceeds were used to pay secured creditors.

Consequently, Vestacon's action against 260 was dismissed, and its cross-motion for a certificate of pending litigation was also dismissed.

The court awarded substantial indemnity costs of $85,000 to 260.