The appellants challenged a trial judgment holding the corporate appellant liable for breach of trust under the Construction Lien Act and imposing personal liability on the sole director and shareholder under s. 13(1).
The principal issue was whether the individual appellant had the requisite knowledge that the impugned disbursements amounted to a breach of trust.
The Court of Appeal held that the evidence clearly supported a finding that he reasonably ought to have known the disbursements were a breach of trust.
The court also declined to interfere with the trial judge’s discretionary decision on interest.
The appeal was dismissed with costs and the cross-appeal on interest was dismissed without costs.
