Home

Ruling on The Guarantee Company of North America v. Royal Bank

FROM:
Mary Van Buren, MBA, CAE
President
Canadian Construction Association

Dear colleagues,

I would like to provide a brief summary of what is an important win for our industry regarding the case of the Guarantee Company of North America v. Royal Bank that was ruled on January 14 by the Ontario Court of Appeal.

The case centred around whether two pieces of legislation – the Lien Act and the Bankruptcy and Insolvency Act – are in conflict when a trust created by the Province of Ontario for a construction company goes bankrupt.

A-1 Asphalt’s bankruptcy with four outstanding paving projects in 2014 was the test case. The Guarantee Company of North America took the position that funds for payment to outstanding general contractors and subcontractors needed to be held aside from the main estate and the Royal Bank contended that all assets were available for distribution to priority creditors i.e. the bank itself.

The ruling in this case upholds that trust funds for a construction project remain in the construction pyramid until all payment to trust beneficiaries has been satisfied even in the case of a bankruptcy and that provincial lien legislation continues to provide security for right to payment.

We believe that the Royal Bank will now seek leave to appeal the case at the Supreme Court of Canada. We will of course keep all membership appraised if the case is selected for consideration.
Read ruling

Latest News

  • SMS Equipment’s New Canada-Wide Dealership Agreements with World-Class Manufacturers, Industry Associations

    October 1, 2019 June 1, 2017, John Deere announced its acquisition of the Wirtgen Group of Companies. Subsequently, October 1, 2019, SMS Equipment and Wirtgen Group of Companies announced their mutual disassociation in the distribution of the Wirtgen product lines. SMS Equipment continues to grow with and invest in the roadbuilding and construction industry as […]

  • FYI to HCANL Members ; Circular – Call for 2021-2022 Municipal Infrastructure Applications

    Circular – Call for 2021-2022 Municipal Infrastructure Applications

  • Premier Ball Announces 140 Municipal Infrastructure Projects

    he Honourable Dwight Ball, Premier of Newfoundland and Labrador, today announced that $123 million will be invested in 140 community infrastructure projects for all regions in the province through the federal Investing in Canada Plan. Premier Ball was joined for the announcement in Deer Lake by the Honourable Lisa Dempster Minister of Municipal Affairs and […]

  • CSA standard for cannabis impairment coming next year

    Substance needs to be addressed separately from alcohol due its effect on the brain The CSA Group is currently working on a new standard to address cannabis impairment in the workplace, which is scheduled to be released spring 2020, attendees heard at the Partners in Prevention Health and Safety Conference and Trade Show in Mississauga, […]

  • Premier Ball Announces $129 Million for Municipal Infrastructure

    The Provincial Government is committing more than $129 million for municipal infrastructure to build safe and sustainable communities across Newfoundland and Labrador. The Honourable Dwight Ball, Premier of Newfoundland and Labrador, was joined for the announcement today by the Honourable Graham Letto, Minister of Municipal Affairs and Environment; and Terry Dunn, President of the Board […]

  • Motor Vehicle Registration – Hours of Service and Safety Information Updates

    Hours of Service application guide. https://www.servicenl.gov.nl.ca/drivers/safetycode/hos_application_guide.pdf Compliance Review and Facility Audit Safety Package http://https://www.servicenl.gov.nl.ca/drivers/safetycode/compliance_review_facility_audit_safety_package.pdf Heavy Civil Association Newfoundland and Labrador Annual General Meeting Service NL Updates and Hours of Service Overview 30 day special permits have been extended to 90 days Review of Quad Axle Self Steer Permits Commercial Drivers Licensing Review HTA amendment to […]

More News...

Association of Newfoundland and Labrador
Copyright © 2013 | Heavy Civil Association of Newfoundland and Labrador | Admin