Vibron Limited v. Kanatherm Limited

Vibron Limited v. Kanatherm Limited

The evidence established that Tracey had effective control, assented to the disbursements and reasonably ought to have known they amounted to a breach of trust under s.13(1); therefore he was personally liable and the trial judge's decision and discretionary award of interest were not to be disturbed.

Citation
C31399
Parties
Plaintiff/respondent: Vibron Limited; Defendant/appellant: Arnold Tracey; Defendant/appellant: Kanatherm Limited
Court
Court of Appeal for Ontario
Jurisdiction
Canada
Judgment Date
1 November 2000
Procedural Posture
Civil / Appeal
Outcome
Appeal dismissed; cross-appeal dismissed
Legal Topics
Breach of Trust, Director Liability Under S.13(1), Knowledge Standard, Interest on Judgment
Source Language
English
Construction Lien Act Trusts Corporate Law Civil Procedure Breach of Trust Director Liability Under S.13(1) Knowledge Standard Interest on Judgment

Case Brief

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Parties

Vibron Limited

Plaintiff/respondent

Arnold Tracey

Defendant/appellant

Kanatherm Limited

Defendant/appellant

Procedural Posture

Civil / Appeal

Legal Issues

  1. 1 Whether the sole director and shareholder was personally liable under s.13(1) of the Construction Lien Act
  2. 2 Whether the director had the requisite knowledge (actual or constructive) that the disbursements amounted to a breach of trust
  3. 3 Whether the trial judge erred in her findings of fact or in the exercise of discretion on interest

Ratio Decidendi

The evidence established that Tracey had effective control, assented to the disbursements and reasonably ought to have known they amounted to a breach of trust under s.13(1); therefore he was personally liable and the trial judge's decision and discretionary award of interest were not to be disturbed.

Court Disposition

Appeal dismissed; cross-appeal dismissed

Orders

  • Appeal dismissed with costs
  • Cross-appeal dismissed without costs