The plaintiff subcontractor moved to strike the defendants’ pleadings for alleged non‑compliance with a prior court order requiring an accounting of trust funds under s. 8 of the Construction Lien Act and sought partial summary judgment declaring a breach of trust.
The defendants produced extensive accounting records but did not provide cancelled cheques, explaining the practical difficulty and asserting that sufficient project funds had been received to satisfy any proven entitlement.
The court held that striking pleadings is an extreme remedy and found the defendants had substantially complied with the order.
The request for a declaration of breach of trust was also premature because entitlement to the remaining disputed contract balance had not yet been determined.
The court directed that the disputed funds be paid into court or an agreed investment vehicle pending trial.
