Breach Of Trust Claims: When Does The Clock Start Ticking?

Certain court decisions are worth revisiting to ensure that they aren't overlooked when facing complicated construction litigation matters. One such case is the decision in Frank's Drilling and Blasting Inc. v. Isbester, 2015 ONSC 3581 ("Frank"). If you are an owner or contractor, Frank could have a significant impact on your business since, arguably, the decision may have equipped contractors, subcontractors, and suppliers with an enhanced tool to pursue claims that may otherwise be statute-barred. For years, contractors, sub-contractors and suppliers have relied on the trust provisions in the Ontario Construction Lien Act ("CLA") to collect on unpaid invoices. The breach of trust remedy is, and remains, an effective tool to sue not only the company that owes the money, but also those individuals in control of that company, such as its officers and directors.