Ontario Court of Appeals ruling good news for design and construction sector

Statutory trusts can survive bankruptcy – so long as funds remain identifiable and traceable
Ontario’s Court of Appeals has ruled that a statutory trust created under Section 8 of the Construction Lien Act/Construction Act can survive a bankruptcy.  The January 14, 2019 decision was made in the case of The Guarantee Company of Canada v. Royal Bank of Canada, 2019 ONCA 9 and overturns the lower court’s decision.