In a CCAA proceeding, the court determined the entitlement to $337,390.62 held in escrow.
Prior to insolvency, the debtor (Earth Boring) and a creditor (Tulloch) entered into an escrow agreement pending judicial review of a construction adjudication order in favour of the creditor.
Two days before the judicial review was dismissed, the debtor commenced insolvency proceedings.
The court held that the escrow agreement did not create a trust.
Applying section 70(1) of the BIA, the court concluded that because the judgment was not fully executed prior to insolvency, the funds remained the property of the debtor's estate and were ordered released to the debtor's successor entity.
