N. Sandhu

The plaintiff subcontractor brought a motion to strike the defendants' statement of defence for failing to comply with previous court orders, and sought judgment for breach of trust under the Construction Act.

The Associate Judge struck the defence and noted the defendants in default.

Although the Associate Judge found he lacked jurisdiction to grant default judgment for an unliquidated breach of trust claim, he determined it was appropriate to grant summary judgment.

The court found no genuine issue requiring a trial regarding the corporate defendant's breach of trust and the principal's personal liability.

The request for a declaration under the Bankruptcy and Insolvency Act was dismissed for lack of jurisdiction.

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.