On an appeal from summary judgment in a construction trust case, the court held that rents received by a commercial landlord after certification of substantial performance were trust funds under s. 7(3) of the Construction Lien Act until the unpaid contractor was paid.
The court rejected the argument that rent used for operating expenses, taxes, utilities, and mortgage payments fell outside the statutory trust or that only profits were captured.
The sole officer, director, controlling mind, and signing officer was personally liable under s. 13 because he at least reasonably ought to have known of the breach.
Relief under s. 35 of the Trustee Act was unavailable, although the prejudgment interest rate against the individual appellant was varied from the contractual rate to the rate under the Courts of Justice Act.