The plaintiff supplier brought an action against the corporate defendant and its principals for unpaid materials supplied to a construction project.
Following default judgment against the corporation, an uncontested trial was held to determine the personal liability of the individual defendants.
The court found that the corporation received funds for the project but failed to pay the plaintiff, constituting a breach of trust under the Construction Act.
The court held the individual defendants jointly and severally liable for the breach of trust, finding they had effective control of the corporation and acquiesced in the breach.