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ARTICLE · 02 MARCH 2018

Case Summary: Valard Construction Ltd. V Bird Construction Co.

Supreme Court of Canada finds obligee/trustee under a Labour and Material Payment Bond breached the fiduciary duty owed to a claimant by failing to disclose existence of the Bond.

CanadaReal Estate and Construction

VI. SURETY AND BOND ISSUES

A. Supreme Court of Canada finds obligee/trustee under a Labour and Material Payment Bond breached the fiduciary duty owed to a claimant by failing to disclose existence of the Bond.

Valard Construction Ltd. v. Bird Construction Co., 2018 SCC 8,per Brown J. (McLachlin C.J. and Abella, Moldaver and Rowe JJ. concurring, Côté J. concurring in result, and Karakatsanis J. dissenting)

I. FACTS AND ISSUES

Bird Construction Co. ("Bird"), as general contractor, entered into a contract with Suncor Energy Inc. ("Suncor") for construction work on one of Suncor's oilsands projects (the "Project"). Bird subcontracted a portion of its work to Langford Electric Ltd. ("Langford").

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