The appellants appealed a summary judgment declaring them in breach of the trust provisions of the Construction Lien Act and ordering them to pay $216,662.84 to Airex Inc. Ben Air System Inc. had entered into a subcontract with Omico Mechanical Ltd. to perform HVAC work on a TTC facility and ordered equipment from Airex.
The appellants argued that Ben Air had paid out more money on the project than it received, and therefore had not breached the trust provisions.
The Court of Appeal upheld the summary judgment, finding that the appellants failed to file evidence of sufficient weight to support their position.
The evidence was contradictory, lacked documentary support, and was delivered late.
The court found that once Airex established it was a subcontractor owed money and that Ben Air had received trust funds, it was Ben Air's burden to show the trust monies had been properly applied.