R. Drake

The plaintiff brought a motion for summary judgment in an action for debt collection and breach of trust under the Construction Act.

Due to pandemic-related delays in exchanging records, the parties consented to convert the matter into a two-day summary trial.

The court scheduled the summary trial, directed the parties to a pre-trial conference, and exempted the action from mandatory mediation.

Multiple purchasers of commercial condominium units alleged misrepresentation and overcharging by the developer and sought interlocutory relief preventing the developer from disposing of its remaining assets pending trial.

The moving parties argued the developer had limited assets and that dissipation would frustrate recovery of any judgment.

The court held that pre‑judgment restraint of assets is an extraordinary remedy requiring a strong prima facie case, evidence of asset dissipation outside the ordinary course of business, and proof of irreparable harm.

The evidence did not establish that the developer was disposing of assets improperly or that irreparable harm would result.

The motion to restrain disposition of assets was dismissed.

The plaintiff supplier brought a motion for summary judgment for unpaid invoices and breach of trust under the Construction Lien Act arising from the supply of electrical equipment to several related contractor companies.

The court found the defendants had received goods without payment and provided no evidence disputing the invoiced amount.

Because the corporate defendants operated as iterations of the same family-run business and attempted to attribute liability to a dormant company, the court treated them as alter egos and held them jointly and severally liable.

However, the court declined to grant summary judgment on the alleged breach of statutory trust, finding further production and cross-examination necessary to determine whether trust funds had been received and improperly disbursed.

Judgment for the invoiced amount was granted, with the trust claim adjourned for further evidence.